The 21st Century ROAD to Housing Act, which automatically became law after President Trump neither signed nor vetoed it, introduces various measures to boost housing supply and affordability. Key provisions include restrictions on large institutional investors from purchasing additional single-family homes, which supporters believe will reduce competition in certain markets.
The law also expands the definition of 'manufactured home' to encourage the use of factory-built homes, potentially lowering costs for buyers. Additionally, a pilot program will facilitate access to small mortgages under $100,000, aimed at helping buyers in lower-cost markets.
Despite these initiatives, experts like Selma Hepp and John Walkup caution that the benefits will take time to materialize, as housing development is a complex process influenced by local factors.
The legislation is seen as a step towards addressing a significant housing supply deficit of about 4 million homes, but it is not expected to provide quick solutions to the ongoing affordability crisis, with median home prices reaching $440,600 and mortgage rates above 6.5%