Broad bipartisan support: House passes bill to make housing more affordable

The House of Representatives passed with broad bipartisan support a bill to make the housing more affordable. It is the Housing for the 21st Century Act, which seeks to increase the supply of housing to eventually see a rollback in prices. The bill will now move to the Senate, where it is expected to generate more debate.

The legislation passed the Lower House with 390 votes in favor and only 9 against. The ultimate goal of the bill is to speed up construction and make access to housing cheaper.

"The House just passed the bipartisan Housing for the 21st Century Act, which will combat rising housing costs by modernizing federal housing policies to increase the supply of homes, reducing regulatory barriers, and updating outdated programs," celebrated Congressman French Hill (R-AR), chairman of the House Financial Services Committee.

"Today’s House passage of the Housing for the 21st Century Act is a critical step toward addressing this shortage by reducing unnecessary regulatory barriers, modernizing HUD programs, and giving banks flexibility to deploy capital to increase our housing supply," said House Speaker Mike Johnson.

The bipartisan diagnosis is that "housing supply has not kept pace with demand, leaving the nation short by as many as 5.5 million units." According to the Chamber's Financial Services Committee, this generated an increase in construction costs, logistical delays and outdated zoning regulations.

To combat this, the bill aims toreduce regulatory barriers that increase the cost of housing, modernize federal housing programs and improve access to capital for builders and lenders.

In turn, it would give states and cities greater leeway to execute housing funds and reduce regulatory burdens on community banks so they can lend more to housing projects and buyers.