What the ROAD to Housing Act means for agents, homebuyers

The 21st Century ROAD to Housing Act is now the law of the land after President Donald Trump allowed a constitutional deadline to pass without signing or vetoing the bipartisan legislation.

Legislation — widely regarded as the most comprehensive federal housing package in decades — cleared the Senate on an 85-5 vote and passed the House on a 358-32 vote before reaching Trump’s desk.

Trump had previously canceled a planned bill signing ceremony and later announced he would not sign the legislation as part of a protest tied to the stalled SAVE America Act, an unrelated elections proposal.

Bill provisions are intended to address the nation’s housing affordability crisis by encouraging more housing production, reducing regulatory barriers, expanding financing opportunities and increasing access to homeownership.

Supporters from both parties said the legislation becoming law marks a significant milestone.

“With or without the president’s signature, the Road to Housing Act becoming law is a win for Virginians and families across the country,” said Sen. Mark Warner, D-Va. “As housing prices reach near-record highs, this bipartisan legislation will deliver real relief to veterans, renters, first-time homebuyers and rural residents in Virginia and across the country.”

Rep. Mike Flood, R-Neb., who helped lead the legislation in the House, called the measure a major bipartisan accomplishment.

“I am thrilled that the ’21st Century ROAD to Housing Act’ is now officially law,” Flood said. “While the journey was long and, at times, delicate, we arrived at the right outcome with a meaningful bipartisan housing bill that slashes red tape, lowers housing costs and helps put the American dream of homeownership within reach for more hardworking families.

“Simply put: This is legislation that the American people can be proud of.”

What the law does

The legislation targets one of the biggest drivers of high housing costs — a shortage of available homes.

Its provisions include streamlining portions of the federal review process for qualifying housing developments, promoting manufactured and modular housing, creating an FHA small-dollar mortgage pilot program, increasing FHA multifamily loan limits and authorizing additional housing and community development initiatives.

The law also includes measures designed to limit certain future purchases of single-family homes by large institutional investors.

“The president had every opportunity to sign this bipartisan bill into law, and he refused to, but the housing affordability crisis cannot wait,” Warner added. “This landmark law will boost the housing supply while lowering costs, protect veterans and renters and prevent housing in rural areas from being bought up by corporate investors.

“With the passage of this legislation, American families are one step closer to affording a place to call home.”

Why it matters for real estate agents

For real estate agents, the legislation could improve market conditions over time by increasing housing inventory and creating more opportunities for buyers and sellers.

Many markets have struggled with historically low inventory — limiting transaction volume and making it more difficult for buyers to find homes. If the law succeeds in encouraging additional construction, agents could eventually benefit from more listings, stronger buyer activity and a healthier balance between supply and demand.

The National Association of Realtors (NAR) said the legislation reflects years of advocacy focused on expanding housing opportunities.

“This law combines nearly 50 carefully negotiated measures to increase housing supply, improve affordability, expand access to homeownership, strengthen housing finance and support veterans,” NAR said. “For Realtors, this law is more than a legislative victory. It shows what sustained advocacy and bipartisan leadership can accomplish to expand housing opportunities and strengthen communities nationwide.”

The FHA small-dollar mortgage pilot could also expand financing opportunities for lower-priced homes — potentially bringing more first-time buyers into the market.

Meanwhile, provisions supporting manufactured and modular housing could create additional inventory options for consumers who have been priced out of traditional single-family homes, experts say.

What it means for brokerages

Brokerages also stand to benefit if the legislation succeeds in increasing housing production.

More available homes generally translate into more transactions, benefiting residential brokerages as well as affiliated mortgage, title and settlement businesses.

Firms with strong relationships in the new-construction sector could see additional opportunities if builders respond by accelerating development.

The law’s provisions affecting institutional investors may also modestly reduce competition for some single-family homes — although the impact is expected to vary because investor ownership remains concentrated in certain metropolitan markets.

What homebuyers should know

For homebuyers, the legislation is designed to improve affordability over the long term rather than provide immediate financial assistance.

Any increase in available homes is expected to occur gradually as developments move through the construction pipeline.

Buyers should not expect an immediate drop in home prices or a sudden increase in inventory, but the law could eventually expand choices through additional housing production, manufactured housing options and improved financing for lower-cost homes.

The American Land Title Association (ALTA) welcomed the legislation becoming law, saying it represents an important step toward expanding homeownership opportunities.

ALTA CEO Chris Morton said, “This is a big win for the American people. Homeownership is one of the most important ways families build stability, security and generational wealth — and the 21st Century ROAD to Housing Act is an important step toward helping more Americans achieve that dream.”

While the law is unlikely to solve the nation’s housing affordability crisis on its own, it represents one of the most significant federal housing reforms in decades and could reshape residential real estate markets over the coming years.

This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication.