The BareStory
On Thursday, the Senate passed the 21st Century ROAD to Housing Act by an 89-10 vote. Negotiated by Senators Elizabeth Warren and Tim Scott, the legislation aims to lower costs and expand the national housing supply by easing building regulations and restricting corporate home ownership.
A core provision of the Senate bill bars institutional investors with 350 or more single-family homes from acquiring additional properties. The measure allows exceptions for companies undertaking new build-to-rent construction or substantial renovations, provided they sell those units to tenants within seven years. Dissenting lawmakers, including Senator Brian Schatz, joined several real estate industry groups in opposing the cap, warning that the seven-year forced sale requirement would heavily damage the build-to-rent market and decrease overall rental availability.
The package faces hurdles in the House of Representatives, which overwhelmingly passed its own iteration of the legislation last month. House leadership indicated that a conference committee will likely be required to reconcile the two bills. Lawmakers must navigate disagreements over the Senate’s removal of certain homebuilding provisions, as well as debates regarding a central bank digital currency. The Senate version includes a temporary ban on the digital currency, while conservative lawmakers in the House are demanding a permanent prohibition.
The bill's final enactment may also depend on President Donald Trump, who championed the institutional investor restrictions and signed a related executive order in January. Despite his support for the housing limits, the president recently stated he will withhold his signature from any new legislation until Congress passes the SAVE America Act, a separate measure requiring proof of citizenship to vote.
How it may affect me
As a U.S. reader:
• In the long term, prospective homebuyers may face less competition from large corporate buyers, potentially improving their ability to purchase single-family homes and build personal wealth.
• Renters could experience a decrease in overall rental property availability if the mandated seven-year sale requirement discourages institutional developers from investing in new build-to-rent construction.
• In the short term, citizens will not see immediate changes to housing costs or supply because the legislation remains stalled by House negotiations and a presidential veto threat.
• The public may face a delayed or permanently halted rollout of a central bank digital currency, depending on how Congress resolves differing bans in the House and Senate bills.
• Voters could ultimately be required to provide proof of citizenship at the polls if Congress passes the SAVE America Act to secure the president's signature on this housing package.
