Key Takeaways

  • The 21st Century ROAD to Housing Act is a federal effort to address the national housing supply shortage by reducing the barriers that slow residential construction.
  • The intention is to reconcile sections from two other previous bills, one from the House and one from the Senate, while also adding new provisions.
  • While the new bill has passed in the House, the Senate added an amendment that would impact large-scale institutional investors, so it must now go back to the House for reconciliation.
  • If this bill passes, we could see a gradual improvement of housing availability and rental supply over time.
  • As far as restrictions go, large-scale institutional investors would face heavy limitations on owning more than 350 single-family homes.
  • These restrictions could mean even more opportunities for low to mid-level investors and a decrease of large-scale competitors.
  • The 21st Century ROAD to Housing Act is expected to be reconciled in the House sometime between now and May. 

The 21st Century ROAD to Housing Act just recently passed in the Senate (89-10), as the government tries to make it easier and faster to build housing, giving more incentive and hope to prospective home buyers. 

For borrowers everywhere, this act can directly impact housing construction, supply, and affordability—and that’s a signal worth paying attention to.  As a hard-money lender active in new construction and fix & flip markets, Asset Based Lending is paying close attention to this bill to ensure we can help our borrowers take advantage of the changes that may come their way. 

What is the 21st Century ROAD to Housing Act?  

The 21st Century ROAD to Housing Act is a federal effort to address the national housing supply shortage by reducing the barriers that slow residential construction: zoning restrictions, permitting delays, and policies that limit density.  

This housing act is an attempt for the House of Representatives and the Senate to combine two previous bills: The Housing for the 21st Century Act (H.R. 6644) and the Renewing Opportunity in the American Dream (ROAD) to Housing Act (S. 2651). The intention is to reconcile sections from both bills, while adding new provisions, in hopes of gaining approval from both the House and the Senate.  

The bill’s committee report states that its intention is “to make it easier to build and afford housing, including modernizing outdated government programs, lowering costs by removing unnecessary federal requirements, and increasing local flexibility over housing decisions.”  

Will the 21st Century ROAD to Housing Act Pass?  

The bill originally passed in the House of Representatives on February 6th, 2026, however the Senate then passed the bill with an additional amendment, which now includes restrictions on large institutional investors purchasing and owning single-family homes. As defined in Title IX, Section 901 within the Act: “Homes are for people, not corporations”.  

With these additions, the 21st Century Act is expected to make its way back to the House of Representatives for reconciliation sometime between now and May. However, opposition for the Act is starting to grow, as some members of the House are expected to push back on the additional amendment and additions not related to housing, such as Title X, Section 1001, which puts a temporary ban on the Federal Reserve from creating digital currency.  

What Does the 21st Century ROAD to Housing Act Mean for Investors?  

At a high level, the ROAD to Housing Act does four key things:  

  • Incentivizes municipalities to loosen restrictive zoning—opening up land for development that was previously off-limits. 
  • Streamlines federal review and permitting processes to reduce construction timelines. 
  • Expands allowances for ADUs (accessory dwelling units) and infill development. 
  • Pushes toward more density—more units on existing parcels. 

When it comes to investors, it’s important to note that property restrictions are only going to impact large-scale, institutional investors; specifically, companies that own 350 single-family homes or more are going to be restricted and face more limitations when it comes to purchasing or acquiring additional properties.  

That being said, there are quite a few organizations have come out to share their support for the Act, including National Association of REALTORS, National Association of Affordable Housing Lenders, National Low Income Housing Coalition, Bipartisan Policy Center and The United States Conference of Mayors, with the understanding that there is a housing crisis that does need to be addressed.  

What Does the 21st Century ROAD to Housing Act Mean for the Housing Market? 

In terms of what this bill could mean for the housing market, housing availability should hopefully improve, albeit gradually, as housing construction increases. These changes won’t happen overnight, and local implementation will take time—but the directional shift is clear. With the new restrictions targeting specifically large-scale institutional investors, small to mid-sized investors who work with ABL would be able to take advantage of even more new construction and build-to-rent opportunities.  

Some housing markets may also see less involvement from larger institutional investors, which could lower competition in certain markets. How this plays out will largely depend on the House of Representative’s response to the Senate’s decision to add this amendment, and if it will remain unchanged through reconciliation.  

It’s also important to note that the rental supply may also increase affordability for both renters and buyers; expanded federal lending programs and updates to affordable housing could support access to mortgage and hopefully influence long-term stability across the board. 

Secure Reliable Funding through Asset Based Lending  

While the 21st Century ROAD to Housing Act faces scrutiny and uncertainty as it moves back to the House of Representatives, you can rest assured that Asset Based Lending is here to support your real estate investment goals in this ever-changing housing market.  

Whether you’re looking into new construction, DSCR rental loans, or refinancing, we have a variety of loan options designed to fit your investment goals and needs. If you’re ready to partner with ABL to grow your portfolio, pre-qualify today and get started on your next investment project. 

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