The Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025—a major federal housing bill—cleared a key hurdle in the U.S. Senate this week. Unanimously approved by the Senate Banking, Housing, and Urban Affairs Committee, the 2025 Federal Housing bill targets nationwide challenges in affordability, housing supply, and program efficiency.
A Market Under Pressure
This legislation comes at a time when the U.S. housing market faces growing pressure. In 2024, home prices reached an all-time high, with the average salary needed to afford a mortgage eclipsing $100,000 in most states. The market is particularly tough for first-time buyers, many of whom are priced out or forced to rent. The rental market isn’t much better. Last year, Americans in 21 states classified themselves as rent-burdened, spending more than 30% of their income on housing.
Senator Tim Scott, Chair of the Senate Banking Committee, emphasized the unifying importance of housing.
He said, “Many people around the country, frustrated with the way we do American politics, wonder: Is there any issue that brings this nation together? And I’m here to say hallelujah! We have found one. It is housing.”
The committee then advanced the 2025 housing bill by a 24–0 vote.
Inside the 2025 Housing Bill
The 2025 housing bill includes a wide range of provisions designed to expand access, streamline development, and modernize key housing programs including:
- Faster permitting and zoning to support new housing, including modular and manufactured homes.
- Reauthorization of the HOME Investment Partnerships Program, a key tool for affordable housing development.
- A $1 billion Innovation Fund to support infrastructure in housing-growth areas.
- Increased investment limits for banks financing affordable housing.
- Expanded support for rural communities and Opportunity Zones.
- Workforce reforms to address appraisal shortages and simplify property inspections.
These updates aim to modernize housing policy and remove barriers to affordable development. For affordable housing professionals, this legislation addresses long-standing issues: outdated regulations, funding gaps, and limited supply. If passed, it would:
- Grow and preserve affordable housing,
- Reduce development delays,
- Attract investment to underserved areas,
- Improve local infrastructure, and
- Strengthen housing-related workforce pipelines.
What Happens Next?
The 2025 Federal housing bill now moves to the full Senate. A vote is expected in the coming weeks.
Navigate will continue tracking this legislation and sharing updates with our partners. As this bill evolves, so do the opportunities to support stronger, more resilient communities.
Stay connected with Navigate for more insights on housing policy and how it affects the communities we serve.
