21st Century ROAD to Housing Act: Can new US housing law ease affordability pressure?
The US '21st Century ROAD to Housing Act' aims to address the national housing affordability crisis by streamlining construction regulations and restricting large institutional investors from buying single-family homes. The law seeks to increase supply to combat record-high home prices and limited inventory.
Why it matters
As housing affordability remains a top concern for US voters, this legislation represents a major federal attempt to intervene in the supply-side of the real estate market.
The 21st Century ROAD to Housing Act is putting housing supply at the centre of the US government's response to an affordability crisis that has pushed homeownership increasingly out of reach for millions of Americans. The bipartisan legislation, which became law on July 11, contains more than 40 provisions aimed at making it easier to build homes and expanding access to affordable housing.The law comes as US home prices remain near record levels. The median existing-home price reached $440,600 in July, marking the 36th consecutive month of annual price increases, while high mortgage rates and limited inventory continue to weigh on buyers.The central question now is whether the ROAD Act can address the underlying shortage of homes — and eventually make housing more affordable.What does the ROAD Act aim to change?The legislation takes a largely supply-side approach, seeking to reduce regulatory barriers that make housing slower and more expensive to…
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