Key facts
- Congress has enacted the 21st Century ROAD to Housing Act.
- The act aims to address housing affordability by removing regulatory obstacles.
- It creates incentives for localities to reform zoning rules.
- New tools are provided to support multifamily housing construction.
- The Low-Income Housing Tax Credit will be expanded and strengthened.
For years, housing affordability has been a significant challenge in the United States, characterized by rapidly increasing rents, first-time buyers being priced out of markets, and families struggling to find adequate housing. The causes, including the aftermath of the Great Recession, restrictive zoning policies, and pandemic-related supply chain disruptions, were well-understood but largely unaddressed in Washington.
This situation has changed with the enactment of the 21st Century ROAD to Housing Act. The legislation is designed to tackle the housing shortage, which is measured in the millions of homes, by removing regulatory barriers that have hindered homebuilding and by creating incentives for local governments to reform zoning laws. The act also modernizes federal housing programs to better reflect current living and working patterns.
Specifically for the multifamily sector, the law introduces new financial tools intended to make apartment construction more feasible, addressing challenges posed by rising construction and financing costs. These measures, combined with recent expansions to the Low-Income Housing Tax Credit, are expected to contribute to increased housing supply and reduced costs over the long term.