On June 23, 2026, Congress passed the 21st Century ROAD Act, a housing measure designed to tackle affordability. On June 29, House Speaker Mike Johnson forwarded the bill to the White House. President Trump had 10 calendar days (excluding Sundays) to sign or veto.
He chose to do neither, so the bill became law automatically on July 11. This happened while the median price of an existing U.S. home sat at $440,600 - a 49.2% increase from June 2020. Mortgage rates on 30-year fixed loans hovered above 6.5%.
And Realtor.com estimates the nation is short about 4 million homes.
For years, the affordability of housing has been deteriorating steadily. Since the pandemic began, home values have skyrocketed much faster than wages, locking out many first-time buyers. Low inventory, intense demand, and elevated borrowing costs have combined to push the dream of homeownership further out of reach for millions of Americans.
Against this backdrop, lawmakers sought to address some of the structural barriers behind the shortage. The law also aims to stimulate construction by relaxing outdated zoning codes that have limited development.
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While the legislation targets fundamental challenges, analysts caution that homeowners won't see quick improvements.
Record-breaking home values, combined with a lack of inventory and elevated borrowing costs, have made housing less affordable. The new law attempts to address these issues, but experts warn that solving the shortage will take time.
The law targets several big drivers of high housing costs. The legislation reduces red tape and encourages municipalities to update their zoning and land-use rules, which have constrained construction. The National Association of Home Builders' chairman, Bill Owens, stated that the legislation "will help expand the nation's housing supply by reducing regulatory barriers and encouraging local governments to reform zoning and land-use policies that have limited home building."
The bill's passage follows years of stalled attempts to address housing affordability at the federal level, reflecting growing urgency as the median home price rose nearly 50% in six years. With mortgage rates above 6.5% and a 4‑million‑home shortage, the crisis has become a top concern for policymakers.
Selma Hepp, chief economist at Cotality, warned that homebuyers should not expect fast results. "Unfortunately, homebuyers should not expect immediate relief," she said. "Housing development takes time and many of the benefits would likely materialize gradually rather than overnight." John Walkup, co-founder of UrbanDigs, explained that local factors matter more than any federal law. "It's a complicated calculation that ropes in construction costs, labor availability, land prices, infrastructure constraints, local zoning rules, and community opposition that determines how much housing gets built," he said. "Legislation can help create incentives and remove obstacles, but it can't single-handedly solve a housing shortage that has been building for years."
The law can encourage change, but it cannot force it.
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