Senate passes bipartisan housing bill to expand access and improve affordability

The Senate passed a sweeping bipartisan housing bill Thursday, known as the Road to the 21st Century Housing Act, in a rare example of cooperation between Republicans and Democrats in an election year.

The measure passed the upper house of Congress by 89 votes to 10, reflecting widespread concern about rising rent and housing prices across the country.

The bill seeks to address the housing affordability crisis and the rising cost of living, a key issue for voters in the face of sharply rising home prices and rents, which have risen about 60% since 2019.

In addition to incentives to build new housing, the measure includes programs to convert abandoned buildings into housing developments and subsidies to renovate existing properties.

Housing bill faces new hurdles in the House

The Republican majority leader in the Senate, John Thune, said in a floor speech earlier this week, "this bill offers real solutions that will unlock new home construction, drive down prices and increase the supply of affordable homes."

However, the bill now returns to the House of Representatives for consideration. The House passed a similar version in February, but there are key differences, such as the Senate's stricter approach to institutional investors and other provisions.

For his part, House Speaker Mike Johnson has told Republicans that the two chambers may need formal negotiations to reconcile the competing versions, a process that could delay the bill for weeks.

Members of the right-wing House Freedom Caucus have criticized provisions that would limit institutional investors from buying single-family homes, as well as the temporary ban on a central bank digital currency included in the text.

A bipartisan opportunity to address the housing crisis

Backers of the initiative argue that the housing proposal provides Congress with a rare opportunity to address an affordability problem that concerns voters of all political stripes.

"This landmark, bipartisan bill will help tackle the root cause of this crisis by getting more homes built in every community across the country," said Elizabeth Warren, the top Democrat on the Senate Banking, Housing, and Urban Affairs Committee.