Legislative efforts to address housing affordability in the United States are accelerating on Capitol Hill. Analysts highlight growing bipartisan cooperation, signaling a strong possibility that key measures will be enacted next year.
According to analysts at Raymond James, recent congressional moves have bolstered the outlook for housing and financial deregulation. The sectors poised to benefit most include manufactured housing and multifamily residential projects.
Both the House and Senate proposals prioritize speeding up construction pipelines and reducing regulatory barriers to supply.
Strong Backing from the House
This week, the House Financial Services Committee advanced the “Housing for the 21st Century Act” with a decisive 50-1 vote. This rare display of bipartisan unity is viewed as a bullish indicator for the bill’s future.
This move follows the Senate’s recent approval of its own housing package, the “ROAD to Housing Act,” which was passed as part of the National Defense Authorization Act.
Raymond James noted the constructive tone of the committee debates, where lawmakers characterized the bill not as a silver bullet, but as a crucial first step. This pragmatic approach raises the odds of continued progress on housing reform in the new year.
More
Key Provisions of the Bill
The House legislation aims to modernize and streamline federal housing programs. Major components include:
- Zoning Best Practices: Providing federal guidance on land use to encourage development.
- HUD Grants: New funding to support pre-approved housing designs and regional planning efforts.
- Loan Limits: Increasing limits for multifamily construction projects.
- Permitting: Revising federal rules to shorten approval timelines.
The bill also seeks to boost the adoption of manufactured and modular housing by removing specific structural requirements and establishing the Department of Housing and Urban Development (HUD) as the primary regulator.
During the committee markup, several amendments were adopted, including measures supporting veteran homeownership and expanding height limits for certain multifamily structures.
What’s Next?
The bill is slated to reach the House floor in early 2026, setting the stage for negotiations with the Senate in the spring. While the House and Senate packages share many common goals, analysts note that differences regarding the scale of incentives and financing support will still need to be reconciled.
