In mid-June, Congressional negotiators reached a bipartisan agreement on a federal housing bill, the 21st Century Road to Housing Act. The legislation passed both the House and the Senate, but at this point, President Donald Trump’s position is unclear, and the bill had not been signed. The bill is the most significant attempt in decades by the U.S. Congress to address the nation’s affordable housing crisis.
During the debate and creation of this legislation, “Affordability” was of concern to many Americans, and the bill responds to the widespread belief that action on housing is critical to address such concerns. The passage of this legislation proved to be a rare instance of constructive legislating, as legislators from both major parties worked together to find a compromise.
The most contentious provision of the bill prohibits large institutional investors from purchasing certain single-family homes to promote homeownership opportunities for families, not corporations. Such large institutional investors are prohibited from owning more than 350 single-family homes. The bill includes numerous carve-outs and provisions that will require the government to promulgate further regulations that clarify how this will impact the housing industry in the years ahead.
The issue of home ownership by institutional investors was heavily debated in the Missouri General Assembly during the 2026 regular session as Senate Bill 1001 was passed by the Missouri Senate and ultimately died in the Missouri House in the final days. MO SB 1001 would have created the “American Dream Act” and barred institutional investors from purchasing homes in Missouri if they own more than 50 single-family properties and further require they cannot purchase a property until it has been publicly listed for sale for more than 90 days. This legislation ultimately was rejected at the end of session due to concerns on whether Missouri property owners retain the fundamental right to sell their property to a willing buyer, without necessary delay or government interference.
Proponents suggest that shifting homes from rental to ownership – to the extent that the bill accomplishes this – would make rentals somewhat more expensive, while making ownership somewhat less expensive. The effects are small, some say, and could be negated by changes in supply from new construction.
Based on available data, approximately 200,000 rental homes across Missouri’s major metropolitan areas are owned by small investors. The vast majority (approximately 90 percent) are occupied by tenant families, many of whom have resided in these homes for five years or more. These properties are not merely financial assets; they are homes that support stable households and communities. Opponents warn that Missouri proposed law (SB 1001) would limit lawful transactions, diminish investments of small investors, and displace tenants.
Returning to the federal housing bill, the 21st Century Road to Housing Act eliminates the current federal requirement that manufactured housing have a permanent “chassis.” The chassis allows a home to be transported, but in many cases manufactured homes are placed on a permanent foundation and are not intended to be moved again. Removing the chassis saves $5,000 to $10,000 per house in construction costs.
The federal law includes several provisions that could make more funding available for publicly assisted housing, although it does not appropriate more funds. The bill raises the “public welfare investment cap” applicable to banks from 15 to 20 percent of capital and surplus, providing added investments in Low Income Housing Tax Credit developments. The bill also raises the national cap on the Rental Assistance Demonstration Program by 100,000 units. And it includes multiple fixes to the Home Investment Partnerships Program, including exemption of some projects from federal environmental review.
The bill also cuts back environmental reviews for small and “infill” residential developments, as well as conversion of office buildings to residences.
As Congress finished work on its housing bill, the Harvard Joint Center for Housing Studies released its 2026 State of the Nation’s Housing report. The report finds that in 2025, the median sales price for a single-family home was 4.7 times the median household income, just slightly lower than the all-time high of 5.0 in 2022. “By comparison, this ratio was 4.1 in 2019 and averaged 3.2 throughout the 1990s.” Not coincidentally, the national homeownership rate peaked at 65.9 percent of households in 2023 and has since fallen to 65.2 percent. That drop is concentrated among households in the younger adult age ranges.
A bill signing ceremony had been scheduled for June 24, but the President delayed signing to push for other legislative priorities. A 10-day window begins when a bill is presented to the President for signature. Without further action, the bill would become law without the President’s signature within 10 days while Congress remains in session. The likely effective date would be July 10, 2026.
Although the federal law has passed, it is likely this issue will continue to draw discussion and potential legislation in the state legislature as the federal law does not prohibit the states from enacting laws that exceed the federal regulations. In the months ahead, the US Treasury will begin providing their interpretation of the recently passed provisions and this may allow for some rightsizing of the new law by the states.