House gives final approval to bipartisan housing bill aimed at lowering costs

House Passes Bipartisan Housing Bill Aimed at Lowering Costs

The House gave final approval on Tuesday to a broad bipartisan bill aimed at lowering the cost of housing, with lawmakers in both parties eager to show progress on affordability issues ahead of this year’s midterm elections. The 358-32 vote sends the bill to Donald Trump, who is expected to sign it into law on Wednesday at the Capitol. The Senate passed the legislation 85-5 on Monday.

The measure would reduce federal regulations, streamline environmental reviews, speed up the construction process and curb the influence of corporate landlords by limiting their ability to purchase single-family homes. It represents one of the most sweeping efforts in decades to increase the supply of housing and bring down prices, as voter frustration runs high about the cost of living.

Maxine Waters, a California Democrat who helped negotiate the bill, said the median age of a first-time homebuyer was now 40 and rents had soared about 47% since the Covid-19 pandemic. “Our country must do better and today we will,” she said.

Dozens of bills were combined to create the final package after months of negotiations, creating a rare moment of bipartisanship in a congressional session that has been plagued by bitter standoffs. The House financial services chairman, French Hill, an Arkansas Republican who worked with Waters and the Senate on the bill, said it was the first time in years that Congress had come together to make “measurable, accountable changes” to the nation’s housing laws. The bill would “help build more homes to meet that growing demand and keep the American dream within reach,” he said.

The legislation on its way to Trump would expand financing, encourage the development of “innovative housing” like modular homes, require new renter protections and enhance programs that aim to end homelessness. It would also offer funding to local governments that build more housing, including Community Development Block Grant money to places exceeding the median rate of homebuilding.

Senate passage of the bill shapes up as a rare bipartisan legislative achievement when much of Republicans' agenda has stalled. The House is expected to give final approval later this week and send the bill to President Donald Trump, who has signalled his support. Democratic Rep Maxine Waters of California, who helped negotiate the legislation, said it was a “huge step toward finally addressing the affordable housing and homelessness crises in this country.”

The final version of the legislation bans corporate investors from buying single-family homes but doesn't include a Senate provision that would have required investors to sell newly constructed homes within seven years. The measure was the result of years of work to “lower costs, expand housing supply, cut red tape, protect taxpayers, and help more Americans achieve the dream of homeownership,” said Senate Banking Committee Chairman Tim Scott, who worked with Democrats to get the bill passed. Massachusetts Senator Elizabeth Warren, the top Democrat on the banking panel, said it is the most significant housing bill to pass Congress since 1990, when the average home in America was sold for USD 150,000. Now it costs more than $500,000, she said. The bill “acknowledges that the federal government has a role to play in lowering housing prices,” Ms. Warren told The Associated Press. “For the first time ever, private equity will be blocked from buying up single-family homes and trying to turn housing into one more Wall Street investment.”

Perspectives

Lawmakers from both parties expressed support for the legislation, but each emphasized different priorities. Republican Senate Banking Committee Chairman Tim Scott highlighted the bill's focus on reducing red tape and expanding supply, while Democratic Senator Elizabeth Warren stressed the federal government's role in curbing Wall Street influence and lowering prices. The final compromise dropped a Senate provision that would have required investors to sell newly constructed homes within seven years, reflecting the difficult negotiations to balance regulatory curbs with market incentives.