Congress is on track to pass one of the most sweeping federal housing reforms in decades, a bipartisan package designed to increase housing supply, reduce regulatory hurdles, and ease homeownership for millions of Americans affected by the high costs of the housing market.

The so-called “Road to 21st Century Housing” Act arises after months of negotiations between Republican and Democratic legislators from both chambers. If it receives final approval in the Senate and House of Representatives, the measure will be sent to President Donald Trump for his consideration.

The bill represents a rare example of consensus in a Congress marked by partisan divisions and budget debates. Its main promoters have been Senator Elizabeth Warren and Senator Tim Scott, along with Representatives French Hill and Maxine Waters.

According to its promoters, the legislation seeks to attack one of the main causes of the housing crisis: the shortage of available homes. For years, supply has been insufficient to meet demand, contributing to rising purchase and rental prices in much of the country.

Incentives to build more homes

The proposal contains more than 45 measures aimed at stimulating the construction and rehabilitation of homes. These include new grant and loan programs to repair older properties, incentives to convert vacant commercial buildings into residential units and mechanisms for local governments to expedite approval of new developments.

It also contemplates the expansion of prefabricated and modular housing, considered by experts as a faster and more economical alternative to increase the housing inventory.

Another relevant provision links part of the federal subsidies to the performance of state and local governments in housing production. In addition, it simplifies certain environmental review and permitting processes that, according to builders and local authorities, often delay the start of residential projects for years.

Proponents of the initiative argue that these measures could significantly accelerate the construction of affordable and mid-priced housing, especially in communities with rapid population growth.

Restrictions on large investors and criticism of the scope of the reform

One of the most debated aspects of the project limits the purchase of new single-family homes by large institutional investors who own at least 350 properties. The measure seeks to prevent corporations with extensive financial resources from reducing the offer available to individual buyers.

The legislation allows some exceptions for companies that build housing for the rental market, although it establishes that these properties must subsequently be sold to private owners after a certain period.

Despite bipartisan support, some lawmakers believe the proposal falls short. Sen. Chris Murphy acknowledged that the project represents an important step forward, but cautioned that it does not include a massive federal investment in affordable housing or fully resolve structural issues related to local zoning and permitting.

For their part, several Republicans voted against, arguing that housing policy should remain primarily in the hands of state and municipal governments. Others noted that lower interest rates and greater fiscal discipline would have a more significant impact on housing affordability.

If it passes the expected final votes in both chambers, the “Pathway to 21st Century Housing” Act could become the most relevant federal housing reform in approximately three decades, marking a new approach in efforts to confront a crisis that affects both first-time buyers and families seeking affordable rentals across the United States.