Now, the Senate is doing just that. They’re doing something about it, too, with a new initiative to address the growing affordable housing crisis in the U.S. To reclaim these federal dollars for affordable housing, Senators Tim Scott (R-S.C.) and Elizabeth Warren (D-Mass.) have reintroduced their bipartisan ROAD to Housing Act. This act would increase the production of affordable housing through renter- and home buyer-friendly provisions. On October 3, 2023, the Senate Committee on Banking, Housing, and Urban Affairs made a courageous move by unanimously advancing the bill. This week’s milestone was the first bipartisan markup for housing legislation in more than a decade.
The ROAD to Housing Act is designed to tackle pressing issues in the housing market, which has become increasingly unaffordable for many Americans. In June, those same homes sold at an all-time high median price of $435,000. This explains how the National Association of Realtors takes its data. By 2023, nearly 50% of all renters in the United States were suffering a cost burden. This equates to more than 22.6 million renters being labeled as “cost burdened.” Such a designation means that these people are paying over 30% of their income towards rent and utilities.
Industry experts and advocates from across the country have expressed excitement about the positive housing market change that the ROAD to Housing Act would represent. Mark Zandi, the chief economist at Moody’s Analytics, called the legislation a “potpourri of different efforts.” Thirdly, it sets out to increase overall supply of housing by a million homes. Alys Cohen, director of federal housing advocacy at the National Consumer Law Center, emphasized that the bill represents “one of the most significant accomplishments” in addressing current housing challenges.
Additionally, the bill provides for other important industry-specific provisions designed to help low-income and rural homeowners. First, it gives relief to borrowers with USDA direct loan mortgages, allowing them to qualify for relief. The legislation would address the worsening crisis of starter home shortage. This dangerous shortage is a driving force behind the current housing affordability crisis.
Cohen was careful to emphasize that the mix of interventions included in the bill don’t guarantee equal effects. “It’s a series of measures, some of which are bold, some of which are modest, some of which will be helpful, some of which may be harmful,” she stated. “The hope is that overall, it’s a significant step forward.”
The problems facing affordable housing are most pronounced in the South, where shortages are most severely felt. Advocates believe that manufactured housing options, often referred to as mobile homes, could play a role in providing more affordable alternatives for prospective homeowners. These factory-built homes provide an excellent value choice for the American families who are most hard pressed to locate a home they can afford.
Support for the ROAD to Housing Act spans a wide range of stakeholders, including industry groups and local elected officials. Supporters point to steps as seen in this positive, nature-friendly direction by this legislation. They caution that it doesn’t truly address the housing crisis. Cohen did acknowledge that although the bill is historic, “this is not a panacea.”