What 21st Century ROAD to Housing Act means for homebuyers and sellers

Bipartisan legislation intended to increase the U.S. housing supply and improve affordability is now law — but experts say homebuyers and sellers shouldn’t expect fast relief.

The 21st Century ROAD to Housing Act automatically became law on Saturday after President Donald Trump neither signed it nor vetoed it within a set timeframe. The legislation combines dozens of housing measures aimed at encouraging home construction, expanding access to financing and restricting purchases by large institutional investors.

The legislation “will help expand the nation’s housing supply by reducing regulatory barriers and encouraging local governments to reform zoning and land-use policies that have limited home building,” said Bill Owens, chairman of the National Association of Home Builders, in a statement after the measure cleared Congress on June 23.

The new law arrives as housing affordability remains strained. Home prices are near record highs and 30-year fixed mortgage rates continue to hover above 6.5%.

The median price of an existing home in the U.S. reached $440,600 in June, up 49.2% from June 2020, according to data from the National Association of Realtors. There’s also an estimated housing supply deficit of about 4 million homes, according to Realtor.com.

“This bill directly targets some of the biggest drivers of housing costs: land-use restrictions, permitting delays, financing constraints and regulatory hurdles,” said Selma Hepp, chief economist at Cotality, a real estate data company.

“Unfortunately, homebuyers should not expect immediate relief,” Hepp said, adding that “housing development takes time and many of the benefits would likely materialize gradually rather than overnight.”

Supporters say the measure could help limit competition from large corporate buyers in some housing markets, particularly in parts of the Sun Belt where institutional investors have been blamed for contributing to higher home prices. Economists, however, say institutional investors’ purchase activity remains relatively light even in many of those markets.