NAHB Applauds Enactment of Landmark 21st Century ROAD to Housing Act

Congress Enacts Landmark Housing Legislation

In a significant victory for the residential construction industry, Congress has enacted the 21st Century ROAD to Housing Act, a bipartisan package designed to expand housing supply, improve affordability, and reduce barriers to homebuilding.

The legislation contains more than 50 provisions addressing housing production, financing, permitting, disaster recovery, and homeownership. Many of these provisions reflect long-standing priorities advocated by the National Association of Home Builders (NAHB).

Highlights for Builders

Land Use & Zoning

• Directs HUD to work with builders, developers, and local governments to identify best practices that encourage housing production.
• Rewards communities that adopt pro-housing policies.

Revitalizing Existing Housing

• Authorizes grants and forgivable loans to rehabilitate aging homes and address health and safety hazards.
• Helps preserve existing housing inventory while improving neighborhood stability.

Multifamily Financing

• Raises FHA-insured multifamily loan limits for the first time in 12 years.
• Indexes future loan limits to inflation to better reflect today's construction costs.

Faster Project Reviews

• Streamlines certain National Environmental Policy Act (NEPA) reviews for smaller and infill housing projects.
• Reduces unnecessary delays before construction can begin.

Expanded Access to Capital

• Strengthens community banks and expands access to housing credit.
• Supports local lenders that finance residential development.

NAHB Successfully Removed Build-to-Rent Mandate

NAHB also successfully advocated for removal of a proposed build-to-rent (BTR) sales mandate from the final legislation.

The proposal would have required institutional investors to sell single-family rental homes after seven years. According to analysis by NAHB and the Urban Institute, the policy could have reduced annual single-family housing production by 40,000 to 72,000 homes. Today, build-to-rent communities represent approximately 10–12% of all single-family housing starts, providing an important housing option for many families.

New Cost of Regulation Study Released

Alongside the legislation, NAHB has released an updated Cost of Regulation in the Price of a New Home study.

The research estimates that:

• Government regulations account for approximately 24% of the final price of a new single-family home.
• Regulations represent roughly 40% of multifamily development costs.

The findings reinforce the need to address regulatory costs alongside increasing housing supply to improve affordability.

Why It Matters

While implementation will take time, this legislation represents meaningful progress toward addressing America's housing shortage. CWHBA will continue monitoring implementation, advocating for practical housing solutions, and keeping members informed about federal actions that affect residential construction throughout Central Washington.

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Section by Section of the 21st Century ROAD to Housing Act