How the Housing Act Paves the Way for a Brighter Future
Story at a Glance:
- The Road to Housing Act includes over 50 provisions to expand housing supply, improve affordability, and support homeownership and rental opportunities.
- Key reforms focus on land use, zoning flexibility, and streamlining approval processes to reduce regulatory costs that drive up home prices.
- A national pilot program will provide grants and forgivable loans to help homeowners repair aging and unsafe housing stock.
- Local and state governments are essential partners in implementing these reforms to address regional housing challenges effectively.
For years, home builders have urged Congress to enact comprehensive housing reform to address rising home building costs. Plenty of pro-housing ideas have circulated the halls of the Capitol, but none have achieved the level of bipartisan support needed to pass both chambers.
That's why the passage of the 21st Century ROAD to Housing Act, which became law in July, is such a significant legislative victory for our industry.
The law features more than 50 provisions to expand housing supply, broaden homeownership and rental opportunities, and help reduce housing costs. It also addresses financing, land use and zoning, multifamily development, and more.
It will take time, even years, to see the full effects of this bill, but the true test will be how it’s adopted locally. In my market in and around Columbus, Ohio, 72.8% of households are unable to afford the median-priced new home, currently $468,552. The numbers may look different in your area, but it’s clear we need more affordable and attainable housing. This legislation is designed to move us in that direction.
There are two elements of the bill that stand out to me because of how they will help builders and homeowners in my area and likely yours, as well: reforming local land use and zoning laws and creating programs to repair or replace our country’s aging housing stock.
This is an important milestone to address long-standing issues, but it’s not a silver bullet that will fix all our problems.
- Bill Owens, 2026 NAHB chairman
Land Use and Zoning Reform
Builders are asked to deliver affordable housing while navigating lengthy approval processes and complex zoning restrictions. The new housing law includes several provisions to encourage state and local governments to adopt more flexible zoning restrictions to create new pathways for development.
One provision creates a pilot program to convert vacant and abandoned buildings into attainable housing, while another creates a program to incentivize development in Community Development Block Grant program areas. Other provisions target the approval process itself, such as streamlining environmental reviews and the approval processes for smaller residential developments and infill housing projects in already developed areas.
The legislation also directs the U.S. Department of Housing and Urban Development (HUD) to work with builders and developers to identify best practices for state and local governments to increase housing production.
These changes matter because regulations are hidden costs that drive up prices. Regulations imposed by local, state and federal governments account for 26.4% of the cost of building a new single-family home, according to recent NAHB research, including nearly $85,000 during the construction phase.
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Aging Housing Stock
Homeowners also are dealing with an aging housing stock that needs to better align with today’s building codes and safety standards. This legislation authorizes a national pilot program that provides grants and forgivable loans for eligible homeowners to address necessary repairs and health hazards. It’s positive for builders (and remodelers like me), as extra funding will help owners start and complete projects they’ve been putting off for years.
Almost half of U.S. homes were built before 1980, and roughly 350,000 such homes are taken out of circulation each year. The new law works to preserve more of our existing housing stock and available supply.
What’s Next?
Although this is a federal bill, much of the work ahead will happen at the local and state levels. The affordability challenges I see in Central Ohio aren't unique to our market, and they won't fix themselves.
The 21st Century ROAD to Housing Act provides important tools and recommendations to support affordability, and local and state leaders will have to work with builders, remodelers and industry professionals to make true progress.
The housing act is an important milestone to address long-standing issues, but it’s not a silver bullet that will fix all our problems. I encourage everyone to stay engaged with their local leaders and to continue fighting for pro-housing policies in their area and make the most of this opportunity.
What to Watch For:
- Applications for NAHB’s Awards are now open, including for The Best in American Living Awards, Custom Home Builder of the Year; the Leading Suppliers Council Spark Award; the Nationals, and several others. The deadline for entries is Sept. 21. nahb.org/awards.
- Professional Women in Building (PWB) Week is September 14-18, promoting industry professionalism and supporting members at the local, state and national levels. Visit nahb.org/pwbweek to help raise awareness of the opportunities for women in the residential construction industry.
About the Author
Bill Owens, 2026 NAHB Chairman
Bill Owens is the 2026 chairman of the board of the National Association of Home Builders (NAHB), the first full-time remodeler to hold that position. He is principal of Owens Construction, a leading residential design/build firm in central Ohio established in 1982.