21st Century Road to Housing Act

Hopefully, in the coming days, the 21st Century ROAD to Housing Act will join the distinguished history of landmark federal legislation that has helped shape the American Dream of homeownership. With many of its provisions expected to have meaningful long-term impacts, the Act seeks to address today's housing challenges while laying the foundation for greater housing opportunity and homeownership in the decades ahead.

Decades of underbuilding, rising construction costs, restrictive land-use policies, and affordability pressures have left communities across the country struggling to provide enough housing for growing populations. In response, Congress has advanced the 21st Century ROAD to Housing Act—a bipartisan effort that seeks to address these challenges by increasing housing supply, revitalizing underused commercial properties, modernizing federal housing programs, encouraging local innovation, and expanding opportunities for homeownership.

Although the legislation creates a strong federal framework, many of its benefits depend on implementation. Key developments to monitor include:

• HUD rulemaking to implement new housing and financing programs.
• State and local participation in grant and incentive programs.
• Local zoning reforms that determine where additional housing can be built.
• Agency guidance from HUD, FHA, and other federal partners on eligibility and funding priorities.

Another significant section of the legislation restricts large institutional investors that own 350 or more single-family homes from purchasing additional single-family homes. For large private equity firms and institutional landlords this means:

• They generally cannot continue expanding their single-family rental portfolios by purchasing existing homes once they exceed the ownership threshold.
• Firms that already own thousands of homes are not forced to sell their existing inventory, but their ability to acquire more homes is significantly curtailed.
• There is an exception for certain build-to-rent developments. Large investors may still develop or acquire newly built rental homes, but those homes generally must be sold to individual homeowners after seven years.

Overall, the legislation addresses the nation's housing shortage through a combination of regulatory reform, targeted federal incentives, and expanded financing tools. It provides a broad framework that could increase housing production and expand homeownership opportunities over the coming years.

Understanding the 21st Century ROAD to Housing Act

For REALTORS®

1. More Housing Inventory

Perhaps the most important provision is the bill's emphasis on increasing the nation's housing supply. More inventory means greater affordability, increased transaction volume, and a healthier housing market.

The legislation:

• Encourages local governments to reform restrictive zoning and land-use regulations.
• Expands federal incentives for communities that increase housing production.
• Streamlines certain federal permitting and environmental review processes.
• Promotes redevelopment of underutilized commercial properties into housing.

2. Expanded Homeownership Opportunities

The bill modernizes several federal housing programs to make purchasing a home easier, particularly for:

• First-time buyers
• Workforce housing purchasers
• Moderate-income families
• Rural homebuyers

Several programs administered through HUD and FHA are updated to improve access to financing.

Potential impact

• More qualified buyers entering the market
• Increased demand for entry-level homes
• Greater access to mortgage financing

3. Manufactured Housing

Since manufactured housing is viewed as one of the fastest ways to increase affordable housing inventory, one of the most significant supply-side provisions expands opportunities for manufactured housing by:

• Updating financing rules
• Encouraging placement in more communities
• Reducing regulatory barriers

4. Community Development

Additional redevelopment opportunities for REALTORS® and developers may be created since the bill strengthens programs supporting:

• Infrastructure
• Brownfield redevelopment
• Community Development Block Grants
• Neighborhood revitalization

For Builders & Developers

1. Reducing Regulatory Barriers

The legislation makes changes that are intended to lower construction costs and accelerate housing production by:

• Shortening approval timelines
• Reducing duplicative federal reviews
• Encouraging local governments to modernize permitting
• Incentivizing zoning reform

2. Encouraging Higher Density

Federal grants will reward jurisdictions that:

• Allow duplexes and townhomes
• Permit accessory dwelling units (ADUs)
• Increase mixed-use development
• Expand multifamily housing opportunities

This does not override local zoning but provides financial incentives for communities that choose to reform.

3. Conversion of Commercial Buildings

The legislation promotes the conversion of certain types of properties into residential housing. These properties include:

• Vacant office buildings
• Shopping centers
• Other underutilized commercial properties

This could be particularly impactful in downtowns and suburban office markets.

4. Infrastructure Support

Housing production often stalls because infrastructure cannot support new development. These investments could unlock additional residential development.

The bill expands assistance for:

• Water
• Sewer
• Roads
• Utility improvements

For Investors

The legislation takes a measured approach toward institutional investment in single-family housing. Several provisions include:

• Increase transparency regarding large institutional ownership.
• Encourage owner-occupancy.
• Create incentives favoring homeownership over large-scale acquisitions by institutional investors.

Moving forward, the legislation restricts large institutional investors that own 350 or more single-family homes from purchasing additional single-family homes. While the final legislation is less restrictive than earlier proposals, it reflects growing bipartisan concern over institutional ownership of single-family homes.

For Local Governments

Communities that modernize housing policies may receive:

• Competitive grant funding
• Technical assistance
• Planning resources
• Infrastructure support

The federal government generally uses incentives rather than mandates, preserving local control while encouraging reforms.

For Affordable Housing Providers

The bill expands tools for:

• Affordable rental housing
• Workforce housing
• Preservation of existing affordable units
• Public-private partnerships

Many nonprofit housing organizations and local housing authorities are expected to benefit.

For Mortgage Lenders

The legislation modernizes several federal loan programs by:

• Updating FHA authorities.
• Improving manufactured housing lending.
• Expanding financing options in underserved markets.
• Streamlining certain underwriting and program requirements.