U.S. Senate passes bipartisan Housing Bill aimed at lowering costs

The U.S. Senate on Monday overwhelmingly passed a bipartisan bill aimed at lowering housing costs through a number of measures that include limiting Wall Street investors from buying up houses, streamlining construction, and removing unnecessary red tape around permits. The bill now moves to the House of Representatives before reaching President Donald Trump's desk for signing. The measure is a priority for both parties ahead of November’s midterm elections, as housing costs remain a top concern for voters. The passage of the legislation will mark a tangible victory on a key affordability issue for the administration.

The 21st Century ROAD to Housing Act is designed to increase the availability of affordable single-family homes by making it easier to build homes and slapping limits on Wall Street investors' buying up houses, according to Reuters. The legislation would restrict the number of single-family homes that investment firms could control to 350 per firm; however, the latest version of the bill deleted a provision that would have forced those firms to sell off their additional holding within seven years. 

Furthermore, the legislation will also speed up environmental reviews or allow waivers to fasten the process of construction, and more funds would be freed through federal block grants to states for the same. Under the bill, a revamp of the U.S. Department of Agriculture rural housing program has also been proposed. The entire bill is a compilation of 36 housing measures passed under one bill by the Senate in March and 11 by the House in May.

The U.S. has been struggling with a shortage of affordable housing for years, with various estimates suggesting the number of new homes needed is between 1.5 million and 7.3 million. Now, with the average first-time home buyer being 40 years old, the backers of the bill argue that it would help younger people get into the housing market, which they had long been priced out of due to the outdated regulations pushing up the cost of home-building.  Senate Banking Committee Chairman Tim Scott, a Republican from South Carolina, celebrated the bill, saying it would "lower costs, expand housing supply, cut red tape." 

Democratic Senator Elizabeth Warren of Massachusetts also hailed the legislation as "the biggest housing bill in more than 30 years." While the bill still needs to be approved by the House, Politico reported that it could be fast-tracked, and considerations could begin as soon as Tuesday. President Donald Trump first called for restrictions on Wall Street investors from buying up large swathes of homes back in January, but a bipartisan bill to address the cost of housing proved tough for Congress to pass. A different version of the bill was passed by the Senate in March, while the House passed another in May. However, this time the lawmakers who negotiated the legislation appear more optimistic about the latest version's chances to finally become law and benefit Americans, home buyers.