Congress Enacts 21st Century ROAD to Housing Act to Ease Supply Shortage
The bipartisan 21st Century ROAD to Housing Act became law on July 11, 2026, reducing zoning barriers and streamlining permits to address a national shortage of 1.2 million housing units and combat affordability crisis.
A Rare Bipartisan Win for Housing Supply
The bipartisan 21st Century ROAD to Housing Act became law on July 11, 2026, seeking to address the nation's historic housing supply shortage and affordability crisis by reducing regulatory barriers that slow construction and providing grants to states and local governments to encourage new development.
The law's key provisions modernize permitting, zoning, and land-use requirements and encourage public and private investment in housing development, and also expands funding options under the Community Development Block Grant Program and streamlines federal environmental reviews for certain small-scale housing projects.
The Scale of the Challenge
With a nationwide shortage of roughly 1.2 million housing units, policymakers need to remove barriers that are hindering builders from building more homes and apartments. The legislation targets local zoning restrictions that have historically made it difficult to build affordable multifamily housing in desirable neighborhoods.
The report highlights mounting cost pressures for both renters and homeowners, with nearly half of renter households cost-burdened in 2024, spending more than 30 percent of their income on housing.
For foreign renters and buyers: This law will take years to translate into new units on the ground—permitting reform and zoning change move slowly. But it signals long-term federal commitment to unlocking housing supply. Over the next 2–5 years, expect more new apartment buildings and modular housing in suburbs and secondary cities as developers capitalize on streamlined approvals. International students and expats relocating to Sun Belt metros (Austin, Nashville, Phoenix) may see new mid-range options emerge as the law's effects compound. For now, expect current tight conditions to persist.
Sources
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