ROAD Law passes the Senate: how it would help you buy a house
The Senate passed the ROAD Act. We explain how it could reduce costs, increase available housing and help you buy a home in the US.
Buying a home in the United States has become an increasingly difficult challenge for millions of families. Prices remain high, mortgage rates have increased and housing supply remains insufficient in many cities. Now, a new proposal known as the ROAD Act could change some of that landscape and open up more opportunities for those looking to become homeowners.
The United States Senate approved this week the so-called 21st Century Housing Access Act, also known as the ROAD Act, with a large bipartisan majority of 85 votes in favor and 5 against. The initiative will now be analyzed by the House of Representatives and, if it receives the green light, it will go to President Donald Trump's desk for his signature and finalize its enactment.
The legislation seeks to attack one of the most important problems in the real estate market: the lack of available homes. For years, demand has far outstripped supply, contributing to rising prices for both buyers and renters.
Why does this law matter for those who want to buy a home?
The proposal includes several measures aimed at increasing housing construction and facilitating access to property. One of the most talked about is the limitation on the purchase of single-family homes by large institutional investors, such as private equity firms and real estate investment funds.
If definitively approved, these investors would be limited to acquiring up to 350 existing single-family homes throughout the country. The intention is to reduce the competition that families face when trying to buy property.
In early June, President Trump called on Congress to approve the bill, describing it as “the most comprehensive and consequential housing legislation in the history of our country.”
The law also contemplates incentives to accelerate the construction of new homes, as well as simplify certain regulatory procedures, streamline environmental evaluations, promote zoning reforms, and would encourage previously approved housing designs to reduce construction times and costs.
In addition, an Innovation Fund would be created that would allocate $200 million dollars annually for five years to communities that demonstrate progress in increasing housing supply.
Another relevant aspect is that it would allow empty commercial buildings to be used to convert them into affordable housing. It would also facilitate the development of manufactured housing through increased federal resources and updating some building standards.
“This bill is the result of years of work to reduce costs, expand housing supply, streamline bureaucracy, protect taxpayers and help more Americans achieve the dream of homeownership,” said Senator Tim Scott, chairman of the Senate Banking Committee.
Support is shown in both segments of Congress, as is rarely perceived in the seats.
“This bill is very comprehensive,” said Senator Elizabeth Warren, a member of that same committee. “Each section guides us toward increasing housing supply, reducing costs, and transforming housing into something that is not just a Wall Street investment, but truly affordable for American families.”
Why has housing become so expensive in the US?
The housing shortage is one of the main factors behind the increase in prices recorded during the last decade.
“There is a general recognition that much of the reason home sales prices and rents have increased significantly is that we have built millions fewer homes than are needed since the Great Recession,” said Dennis Shea, executive vice president of the Bipartisan Policy Center.
The average price of a home in the United States is currently around $403,000, compared to approximately $227,000 in 2011. At the same time, the real estate company Redfin estimates that a family needs an annual income of around $116,780 to be able to buy an average home.

