US House Approves Broad Bipartisan Housing Bill to Lower Costs

The US House of Representatives on Tuesday approved a broad bipartisan housing bill with a vote of 358-32, sending it to President Donald Trump, who is expected to sign it into law on Wednesday at the Capitol. The Senate passed the legislation 85-5 on Monday. The bill is one of the most ambitious efforts in decades to increase housing supply and lower prices, as voter frustration over the cost of living runs high ahead of the midterm elections.

The measure reduces federal regulations, streamlines environmental reviews, accelerates construction, and limits the ability of corporate landlords to purchase single-family homes. It also expands financing, encourages innovative housing like modular homes, mandates new renter protections, and strengthens programs to end homelessness.

Maxine Waters, a California Democrat who helped negotiate the bill, noted that the median age of first-time homebuyers is now 40 and rents have soared about 47% since the Covid-19 pandemic. “Our country must do better and today we will,” she said.

The final package combines dozens of bills after months of negotiations, creating a rare moment of bipartisanship in a Congress often marked by standoffs. House Financial Services Chairman French Hill, an Arkansas Republican, said this is the first time in years that Congress has come together to make “measurable, accountable changes” to housing laws. The bill will “help build more homes to meet that growing demand and keep the American dream within reach,” he added.

The legislation provides funding to local governments that build more housing, including Community Development Block Grant money for areas exceeding the median rate of homebuilding. It also allocates funds to convert abandoned infrastructure into housing and offers a framework to reform outdated zoning regulations that limit larger developments. Additionally, it raises limits on public housing units eligible for renovation financing and codifies a recovery program to expedite disaster rebuilding funds.

Notably, the bill does not include a Senate provision that would have required investors to sell newly constructed homes within seven years.

Republicans and Democrats have embraced the bill as a way to address the nation's affordability crisis, driven by a shortage of affordable housing. The US housing market has been sluggish since 2022, when mortgage rates rose from pandemic lows. Sales of previously owned homes have hovered around an annual pace of 4 million since 2023, well below the historical norm of 5.2 million. Sales hit a 30-year low last year and remain weak this year, declining in January and February year-over-year.

The Economic Report of the President in April found a shortage of 10 million homes, while a Harvard University report this month found existing home sales at three-decade lows and inventories rising due to high buying costs. “Cost burdens for both renters and owners continue to climb, while assistance remains profoundly underfunded,” the Harvard report said.

While the median US monthly rent has been declining for nearly three years, it was still 17.2% higher in May than before the pandemic, according to Realtor.com. The bill drew widespread support from landlord and tenant advocacy groups alike. Representative Jim Himes, a Connecticut Democrat, noted the unusual bipartisanship: “In this polarized and angry Congress, we are actually getting something done.”