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By Sam Stevenson
Associate News Editor
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Millions of Americans could see changes to how they buy, finance and maintain their homes after the Senate and House approved one of the most significant housing packages in decades.
In an 85-5 bipartisan vote on Monday, the Senate passed the 21st Century ROAD to Housing Act, a sweeping measure designed to increase housing supply, improve access to homeownership and curb some of the influence of large institutional investors.
The legislation arrives as housing affordability remains a top concern for voters ahead of the midterm elections, with lawmakers in both parties under pressure to address rising home prices and rents.
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Newsweek contacted the U.S. Department of Veterans Affairs (VA) via email on Tuesday morning for comment.
What the Senate Just Approved
The package represents a rare bipartisan breakthrough, bringing together lawmakers as ideologically different as Senator Tim Scott, a South Carolina Republican, and Senator Elizabeth Warren, a Massachusetts Democrat, around a shared concern: housing affordability.
Among its major provisions, the bill would:
- Limit large institutional investors that own at least 350 homes from buying more single-family properties.
- Expand housing supply through incentives, grants, and streamlined building rules.
- Introduce targeted reforms for veterans, including improved VA loan visibility and changes to homelessness eligibility rules.
- Create new federal support for home repairs through grants and forgivable loans.
The bill also passed in the House on Tuesday by a vote of 358-32. It now moves to President Donald Trump's desk for signature.
Housing experts caution that the legislation is unlikely to solve the country's housing shortage on its own.
Dennis Shea of the Bipartisan Policy Center recently told CBS News that the United States has "under-built housing by millions of homes" since the financial crisis.
Why Housing Affordability Remains a Political Flashpoint
The legislation reflects growing concern in Washington over a housing shortage that economists say has been building for more than a decade.
Estimates of the housing shortfall vary widely, from roughly 3 million to 4 million homes according to Goldman Sachs to more than 4.7 million according to the U.S. Chamber of Commerce.
Years of underbuilding following the 2008 financial crisis have contributed to rising home prices, higher rents and worsening affordability for both buyers and renters.
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What It Could Mean for Veterans
Veterans are among the groups most directly affected by the legislation.
- One provision would require mortgage applications to include information about VA-backed loan eligibility, helping ensure qualified borrowers know they may have access to benefits they might otherwise overlook.
- Another measure would require clearer side-by-side comparisons between VA loans, FHA loans and conventional mortgage products, making it easier for veterans to evaluate their options.
- The bill would also exclude disability benefits from certain income calculations used to determine eligibility for housing assistance programs aimed at homeless veterans.
Supporters say the changes could help more veterans access housing assistance while ensuring eligible borrowers are aware of homeownership benefits that often go unused.
How Homebuyers and Homeowners Could Benefit
For prospective buyers and current homeowners, the bill focuses on two persistent concerns: competition for homes and the rising cost of maintaining them.
- Large institutional investors that own at least 350 single-family homes would face new limits on acquiring additional properties, a provision supporters argue could reduce competition for families looking to buy.
- The package also establishes a HUD-backed pilot program offering grants and forgivable loans for home repairs, particularly for lower-income households struggling to maintain aging properties.
- Small landlords with fewer than 10 rental units could also qualify for assistance intended to preserve affordable housing stock.
Analysts caution, however, that institutional investors account for only a small share of overall housing ownership, meaning the impact on home prices could be limited.
Can It Actually Lower Housing Costs?
At its core, the legislation is an attempt to address the country's chronic housing shortage by making it easier and more attractive to build homes.
The package would encourage local governments to:
- reduce regulatory barriers
- speed up approvals for new developments
- expand incentives for construction.
It also includes updates to manufactured housing rules and other measures aimed at increasing the overall housing supply.
Whether those changes are enough to significantly lower costs remains an open question.
Many economists argue the country's housing shortage is so large that meaningful affordability improvements will require years of sustained construction.
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What Happens Next
The ROAD to Housing Act now moves to Trump's desk to be signed into law.
If it becomes law, the measure would mark one of the most significant federal housing policy changes in years, combining supply incentives, financing reforms and targeted assistance programs under a single package.
The larger question, however, is whether those changes can make a meaningful dent in a housing shortage that experts say has been decades in the making.
Contact Newsweek editors on this story: Sam Stevenson and James Debens.
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