Chad Smith
The 21st Century ROAD to Housing Act, a rare bipartisan bill designed to address housing affordability in the United States, was left in limbo Wednesday after President Trump canceled a scheduled signing ceremony just hours before it was set to take place, citing his demand that Congress first pass the SAVE America Act.
At a Glance
- Trump called off the signing via Truth Social, calling the housing bill "of minor importance" compared to other priorities.
- The bill passed Congress by wide margins, making it the first major housing legislation to reach a president's desk since the financial crisis.
- Home prices are up more than 50% nationally since the pandemic; rents have climbed over 30%.
- The SAVE America Act, a voter identification measure, does not currently have enough votes to clear both chambers.
- The final bill dropped a controversial rule that would have forced large investors to sell their home portfolios within seven years.
A Signing That Never Happened
"Today's Housing News Conference and Signing is hereby cancelled until such time as we pass the desperately needed SAVE AMERICA ACT, which I consider to be a National Emergency," Trump wrote on Truth Social Wednesday. The abrupt announcement came after months of negotiations between the House and Senate over the bill's final text, during which Trump periodically threatened to withhold his signature from any legislation until the voter ID measure moved forward.
The SAVE America Act lacks the votes to pass both chambers, meaning Trump's precondition essentially puts the housing bill on hold indefinitely. That outcome denies congressional Republicans and the White House a concrete affordability win ahead of November's midterm elections, at a moment when Trump's approval on economic issues has already slipped following a spike in inflation to a three-year high after the war with Iran.
Why Housing Costs Are a Political Flashpoint
The numbers behind the bill's urgency are stark. Average home prices across the country are more than 50% higher than they were before the pandemic. Rents have risen more than 30% over the same period. A supply shortage estimated in the millions of units has kept prices elevated, and mortgage rates holding above 6% for years have pushed many would-be buyers out of the market entirely.
Housing affordability has moved near the top of voter concern lists, which is part of why the 21st Century ROAD to Housing Act attracted unusual cross-party support. The bill passed with wide margins in both chambers, a rarity for any legislation in the current Congress.
What the Bill Would Actually Do
The legislation takes aim at affordability from several angles. It streamlines the environmental review processes that routinely slow homebuilding approvals. It creates new grant programs to help state and local governments increase housing supply. Construction requirements for manufactured homes would be eased, and financing options for buyers would be expanded.
The bill also restricts the country's largest institutional investors from purchasing additional single-family homes. That provision was the most contentious piece of the entire negotiation. The original Senate version would have required investors owning or building 350 or more homes to sell off their portfolios within seven years, a rule that threatened the business model of companies that construct homes specifically to rent them out.
Build-to-rent developers occupy a complicated space in the housing debate. Pro-housing advocates generally support them because they add new units to a tight supply, which in theory puts downward pressure on rents. The compromise bill kept restrictions on the largest buyers acquiring more homes but dropped the seven-year selloff requirement and carved out exemptions for build-to-rent operators.
Frequently Asked Questions
What is the 21st Century ROAD to Housing Act?
It is a bipartisan bill that passed both the House and Senate by wide margins. It aims to increase housing supply, reduce construction barriers, expand financing options, and limit large institutional investors from buying additional single-family homes.
Why did Trump cancel the signing?
Trump stated he would not sign other legislation until Congress passes the SAVE America Act, a voter identification bill that currently lacks enough votes in both chambers. He also described the housing bill as being of minor importance relative to that measure and to lower interest rates.
What was the controversy over institutional investors?
The original Senate bill would have forced large investors owning 350 or more homes to divest within seven years. The final compromise dropped that rule and created exemptions for build-to-rent developers, while still blocking the largest investors from making additional home purchases.
How bad is the US housing shortage?
Industry data points to a shortage in the millions of units. Combined with pandemic-era price increases of over 50% and mortgage rates that have stayed above 6% for years, the shortfall has made homeownership out of reach for a large share of buyers.
What Comes Next for Housing Legislation
The bill remains in a peculiar position: it cleared Congress with broad support, yet cannot advance to law without a presidential signature that is now contingent on unrelated legislation. Whether the SAVE America Act gains traction, or whether Trump revisits his position before the midterms, will determine if this first major housing bill in over a decade actually becomes law.
