Key facts
- The 21st Century ROAD to Housing Act became law on July 10, 2026.
- It is the broadest federal housing legislation since 1990, with over 40 provisions.
- The act aims to increase housing supply, improve financing, and enhance affordability.
- New measures include an FHA pilot for mortgages under $100,000 and FHA Title I loans for ADU construction.
- Institutional investors owning 350+ homes are barred from purchasing additional single-family homes, with exceptions for build-to-rent.
- A rule requiring manufactured homes to have a steel chassis has been removed, reducing costs.
The 21st Century ROAD to Housing Act, enacted on July 10, 2026, represents the most substantial federal housing legislation in 35 years. This bipartisan bill, which passed with overwhelming margins in both the Senate and the House, aims to address the housing affordability crisis through more than 40 provisions targeting supply, financing, and consumer protection.
The act introduces several key measures designed to increase housing availability and accessibility. A new FHA pilot program will focus on mortgages under $100,000, addressing a gap in financing for lower-cost homes, particularly in rural and lower-median-price markets. Additionally, the legislation classifies Accessory Dwelling Unit (ADU) construction as a valid use for FHA Title I property improvement loans, making it easier for homeowners to finance backyard cottages or basement apartments.
In an effort to curb the influence of large investors on the housing market, the ROAD Act imposes limits on institutional buyers. Investors who own 350 or more single-family homes are now barred from purchasing additional properties, with an exception for build-to-rent developments. This measure is intended to help first-time homebuyers and middle-class families compete with all-cash offers.
Furthermore, the act rolls back a 1976 rule that mandated manufactured homes be built on a steel chassis, a change expected to save buyers approximately $10,000 per unit. The legislation requires 124 specific federal actions for implementation, with a significant portion falling under the purview of the Department of Housing and Urban Development (HUD).