What New ROAD to Housing Act Means for Homeowners

Newsweek

3 days ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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Bipartisan legislation trying to boost the country's supply of homes is moving through the legislature and drawing praise from industry insiders.
Supporters are hailing the package as a significant step toward solving the ongoing housing affordability crisis in the U.S.
The package, known as the ROAD to Housing Act of 2025, is led by Sen. Tim Scott, a South Carolina Republican, and Sen. Elizabeth Warren, a Massachusetts Democrat. It contains directions to increase the nation's housing supply, encourage construction, improve affordability, and increase oversight and efficiency of federal regulators and housing programs.
These measures should help make housing more affordable after skyrocketing prices and historically elevated mortgage rates over the past five years have pushed homeownership out of reach for millions of Americans.
The bipartisan legislation tries to tackle the main reason behind the unprecedented surge in home prices which followed the outbreak of the pandemic—a chronic lack of inventory across the U.S, the result of underbuilding after the subprime mortgage crisis which started in 2007.
The bill, which represents the most substantial housing package since the 1990s, unanimously passed the Senate Banking Committee on Tuesday. It was a historic markup for the committee, which hadn't held one on housing in roughly 17 years.
What Is In The Bill?
A very important part of the 315-page bill is Section 203, which directs the United States Department of Housing and Urban Development (HUD) to "develop best practice frameworks for zoning and land-use policies, helping communities identify and overcome barriers to housing development."
Zoning laws have often been blamed for slowing down or altogether halting new construction projects in states like California, which are strictly regulated. Under the bill pushed forward by Sens. Scott and Warren, pro-housing state and local politicians would be able to refer to a national template for zoning laws to fight against strict rules in their jurisdictions.
Sections 207 and 208 also aim to streamline construction by cutting down on red tape around environmental restrictions. This is in line with what state lawmakers are already doing: in California, Gov. Gavin Newsom recently signed two bills scaling back the state's environmental restrictions to allow for more housing development.
What Impact Will It Have On Homebuyers?
Housing has become increasingly unaffordable for Americans in recent years. Prices have surged by double digits since the pandemic, when low mortgage rates spurred a homebuying frenzy across the country and buyers engaged in ruthless bidding wars while fighting for very limited inventory.
Historically high mortgage rates, which have spiked in 2022 as a result of the Federal Reserve's aggressive campaign to reduce inflation, have further eroded Americans' purchase power. As of June, the latest data available, the median sale price of a typical U.S. home was $447,054, according to Redfin, and the 30-year fixed-rate mortgage was 6.8 percent.
Additionally, other rising costs—including higher property taxes, home insurance premiums, and homeowners association (HOA) fees—are making homeownership more expensive than ever for those who can afford to buy a home in the first place.
Committee Chairman Sen. Tim Scott (R-SC) chats with ranking member Sen. Elizabeth Warren (D-MA) as Fed Chair Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs during a hearing to "examine...
Committee Chairman Sen. Tim Scott (R-SC) chats with ranking member Sen. Elizabeth Warren (D-MA) as Fed Chair Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs during a hearing to "examine the Semiannual Monetary Policy Report to the Congress" on Capitol Hill on June 25, 2025, in Washington, D.C. More"Housing is the #1 monthly expense for families across the U.S," Sen. Warren wrote on X on Tuesday. "The Senate Committee on Banking, Housing, and Urban Affairs unanimously passed landmark legislation that will boost supply, reduce homelessness, and expand homeownership nationwide."
A majority of housing experts and pro-housing advocates have rallied around the package, saying that the bill would be able to unlock the current standstill in the housing market, where buyers are being solidly kept to the sidelines by rising costs.
The American Planning Association (APA) Advocates, which has publicly expressed its support for the bill, said that "the ROAD To Housing Act is the first step in tackling housing affordability in communities throughout the nation." On X, it wrote: "As a result of bipartisan compromise, federal support for locally led reforms will reduce regulatory barriers to increasing housing supply and attainability for all."
The U.S. Conference of Mayors wrote a letter to Sens. Scott and Warren expressing their appreciation for their initiative, saying that "America's mayors know firsthand that a challenge as great and wide spread as housing affordability needs a comprehensive response."
According to the mayors, the bill "lays the groundwork to address the nation's urgent need to boost housing supply, improve housing affordability, and increase oversight and efficiency of federal regulators and housing programs."
"Homeownership is a hallmark of the American dream. The ROAD to Housing Act of 2025 is a great first step to making that dream a reality," Sen. Katye Boyd Britt of Alabama wrote on X on Tuesday.
In a statement shared with Newsweek, chairman of the National Association of Home Builders (NAHB) Buddy Hughes said: "Building more homes is the only way to ease America's housing affordability crisis and the ROAD to Housing Act includes favorable provisions aimed at zoning and land-use policies, rural housing and multifamily housing that will stimulate construction of sorely needed housing."
'No Game-Changer'
While hailing the move as a step forward, several experts are wary of the fact that the bill is unlikely to single-handedly fix the housing affordability crisis in the country.
Mark Zandi, chief economist at Moody's Analytics, wrote on X that the bill is: "no game-changer, but policymakers are finally in the game."
In a statement reported by Housing Wire, Isaac Boltansky, head of public policy at Pennymac, said: "This bill is a welcome step in the right direction. It's not a panacea, but it moves the ball forward on supply, affordability and program efficiency. With a few targeted fixes, especially relating to appraisals, it has real potential to become law and deliver meaningful improvements across the housing landscape."
In a letter to Sens. Scott and Warren, America's Credit Unions, a national trade association for both state- and federally chartered credit unions located in the U.S., said that more efforts should be made by federal lawmakers to allow credit unions to offer longer loan terms.