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Newsweek
a day ago
- Business
- Newsweek
What New ROAD to Housing Act Means for Homeowners
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. 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.
Washington Post
a day ago
- Business
- Washington Post
How Tim Scott and Elizabeth Warren agreed on a sweeping housing package
A sweeping package of housing reforms is gaining rare bipartisan support in the Senate, raising hopes that Congress might be able to pass legislation that would incentivize local governments and private developers to build more homes. After the unlikely duo of Sen. Tim Scott (R-South Carolina) and Sen. Elizabeth Warren (D-Massachusetts) teamed up to write the measure, it passed unanimously out of the Senate Banking Committee on Tuesday — unusual in a Senate sharply divided along partisan lines.
The Hill
2 days ago
- Business
- The Hill
Senate panel advances bipartisan housing bill
The Senate Banking, Housing and Urban Affairs Committee on Tuesday advanced a bipartisan bill aimed at boosting housing supply, improving housing affordability and increasing the efficiency of federal regulators and housing programs. The committee unanimously voted to advance the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025 — led by Chair Tim Scott (R-S.C.) and ranking member Elizabeth Warren (D-Mass.) — in the committee's first bipartisan housing markup in more than a decade. Scott touted the bipartisan effort and noted that it comes as senators' constituents, from all areas of the country, continue to point to housing access and affordability as a top economic concern of theirs. 'For far too long, Congress believed this problem was too big to solve. Today, we're taking not a step – but we're taking a leap in the right direction in a bipartisan fashion,' Scott said in remarks at the markup. 'Many people around the country are frustrated with the way we do American politics wonder, is there any issue that brings this nation together and I'm here to say, halleluiah! We have found one – it is housing. And halleluiah is a southern term, but it's a term of endearment. The massive legislation contains proposals from every member of the committee. The bill includes incentives for states and cities to boost housing supply, and it rewards communities that do so while lowering building costs. The bill cuts much of the red tape around zoning and building standards and streamlines inspections across federal programs to improve efficiency. It also contains provisions to eliminate duplicate regulatory requirements. The bill would instruct the Department of Housing and Urban Development (HUD) to develop a loan and grant program for certain homeowners and landlords to help address home repairs and health hazards, among other provisions. 'For years, the American people have called on their elected officials to act to reduce housing costs. The Scott-Warren legislation represents what is possible when both parties put families ahead of politics. It's a significant step in the right direction,' Warren said in her remarks. 'I'm happy today, but this is only a first step. Congress must do more. I look forward to continuing to work on these issues,' she continued, urging her colleagues to pass the legislation swiftly.
USA Today
2 days ago
- Business
- USA Today
A bill to renew the 'American Dream' of housing just passed a Congressional hurdle
A Senate committee unanimously approved a major housing bill July 29, signaling bipartisan support for an issue that's plaguing constituents in districts around the country. The Renewing Opportunity in the American Dream to Housing Act of 2025 was sponsored by Senator Tim Scott, a Republican from South Carolina, and Senator Elizabeth Warren, a Massachusetts Democrat. The legislation aims to 'increase the supply of affordable housing in America' through a wide range of policies, including increasing construction, making small mortgages more attainable, reforming the appraisal process and supporting manufactured housing, among others. The legislation 'would be the most impactful and comprehensive piece of housing legislation since the Great Recession,' which began in 2007, said analysts at the Bipartisan Policy Center in a summary published after the bill passed through the Senate Banking, Housing, and Urban Affairs Committee. One hint at just how comprehensive the bill is: it incorporates part of at least 27 previously introduced pieces of legislation, the summary explained, of which 23 were introduced with bipartisan sponsors. The national housing crisis has deepened – and it's also becoming more wide-reaching. Both parties' major presidential candidates focused on it on the campaign trail last fall, and legislators around the country remain concerned. Shaun Donovan, CEO and president of Enterprise Community Partners, who served as secretary of the Department of Housing and Urban Development in the Obama administration, told USA TODAY in December, 'There is a political imperative that is much broader than I've ever seen around housing' as nearly every pocket of America, not just pricey coastal cities, becomes unaffordable. Home prices hit a new all-time high in 2024, with the median at $412,500. Using the traditional lender ratio of 31% debt-to-income, a borrower would need an annual income of at least $126,700 to afford a mortgage payment on a home of that price. 'Many people around the country, frustrated with the way we do American politics, wonder, is there any issue that brings this nation together?' said Senator Scott, who chairs the Senate Banking Committee, during the July 29 session. 'I'm here to say hallelujah! We have found one. It is housing.' Read next: The housing crisis threatens the American dream. What's next? Industry groups, including the National Association of Home Builders, the National Association of Realtors, and the Mortgage Bankers Association, released statements in support of the legislation. But even as advocates cheered the committee's step, some cautioned that the bill has a long way to go before it becomes law. The House of Representatives will take it up in the fall, noted the Bipartisan Policy analysts, adding, 'the bill proposes to enhance many existing federal housing programs and create new ones, but does not uniformly propose funding levels for these changes nor propose offsetting budgetary savings or revenue increases.'
Politico
2 days ago
- Business
- Politico
Senate Banking advances first large, bipartisan housing package in a decade
The Senate Banking Committee unanimously advanced landmark housing legislation on Tuesday, marking a rare area of overwhelming bipartisanship in a divided Congress. The Renewing Opportunity in the American Dream to Housing Act of 2025, sponsored by Chair Tim Scott (R-S.C.) and ranking member Elizabeth Warren (D-Mass.), includes proposals that aim to expand and preserve the housing supply, improve housing affordability and access, advance accountability and fiscal responsibility, and improve oversight and program integrity. 'Many people around the country, frustrated with the way we do American politics, wonder, is there any issue that brings this nation together? And I'm here to say hallelujah! We have found one. It is housing,' Scott said before the panel advanced the bill by a 24-0 vote. The legislation directs the Department of Housing and Urban Development to create a new grant and loan program for qualifying homeowners and small landlords to address home repairs and health hazards, develop best practice frameworks for zoning and land-use policies and create a pilot program to incentivize housing development of all kinds in Community Development Block Grant participating jurisdictions, among other actions. Those asks come as the Trump administration is pushing for deep staff and budget cuts at HUD. 'There are new programs here that should operate more directly with the states and local communities so that we're not at the mercy of a stripped down HUD. But I worry about HUD being under resourced to meet its current obligations, much less to take on more,' Warren said in an interview following the markup. Members on both sides of the aisle acknowledged issues with HUD, but said it was important to get something done to improve what many view as a growing housing crisis. The bill received support from a broad range of groups representing the real estate industry, home builders, mortgage bankers, affordable housing organizations and local governments. 'You have to start someplace. And part of it is to upgrade and to modernize a number of the issues that are causing us problems,' said Sen. Mike Rounds (R-S.D.) in an interview on Monday. Some members who have been working on parts of the bill for years acknowledged the potential impact of substantial cuts at HUD.
