The 21st Century ROAD to Housing Act, enacted on July 11, 2026, represents a significant step in addressing the housing crisis in the United States. This bipartisan legislation brings a mix of deregulatory measures and new federal programs aimed at increasing housing affordability and supply. While it offers welcome reforms, it also expands the federal government’s role in housing policy, a domain traditionally managed by state and local governments.
The act includes notable provisions that streamline regulations and reduce costs, particularly for manufactured housing. By removing the requirement for manufactured homes to be built on a permanent steel chassis, the legislation makes it easier and more cost-effective to construct these homes. This change is expected to reduce housing costs and increase the supply of affordable homes, benefiting first-time homebuyers and those looking to downsize.
Key Deregulatory Measures
One of the most significant deregulatory measures in the act is the removal of the permanent steel chassis requirement for manufactured housing. This mandate had increased costs and limited the locations where such housing could be built. By repealing this requirement, Congress has facilitated the construction of more affordable housing options.
The act also streamlines federal environmental permitting requirements for affordable housing projects. Previously, developers had to obtain environmental approvals from both the Department of Housing and Urban Development (HUD) and the USDA, leading to inefficiencies and delays. The new legislation directs these agencies to create a joint review process, reducing redundancies and speeding up the construction process.
New Federal Programs and Their Implications
Despite the deregulatory measures, the 21st Century ROAD to Housing Act introduces over a dozen new federal programs. These include grants for single-stair apartment buildings, an Innovation Fund for reforming zoning laws, and programs for converting commercial properties into affordable housing. While these initiatives aim to address housing shortages, they also increase federal spending and intervention in areas traditionally managed by state and local governments.
The act also includes provisions restricting investor ownership of single-family homes. Initially, the legislation proposed prohibiting investors from owning more than 350 single-family homes, townhomes, or duplexes nationwide. However, the final version of the act significantly revised this provision, eliminating the 7-year forced sale requirement and exempting certain housing types. While these changes address some constitutionality concerns, they still impose compliance costs and could impact property rights and housing supply.
Future Deregulatory Reforms
Looking ahead, there are additional deregulatory reforms that the federal government could pursue to increase the housing supply. One such reform involves selling off vacant, federally owned land to state or local governments or private developers. The federal government currently owns over one-quarter of all land in the United States, including a significant portion of land in the American West. Selling off unused federal land could facilitate more housing construction while preserving national parks, forests, and military installations.
In 2026, Sen. Mike Lee of Utah introduced the HOUSES Act, which would have allowed state and local governments to request the sale of certain federal lands. This reform could add over 2.7 million homes in the West. Additionally, Sen. Lee and Rep. Mark Amodei of Nevada introduced amendments to the One Big Beautiful Bill Act, proposing the sale of more than 1 million acres of federally owned land for housing development. Although these amendments were not included in the final bill, they highlight the potential for future reforms.
The 21st Century ROAD to Housing Act represents a balanced approach to housing reform, combining deregulatory measures with new federal programs. While it offers welcome changes to streamline regulations and reduce costs, it also expands the federal government’s role in housing policy. As housing costs continue to rise, this legislation provides a starting point for addressing the housing crisis, but further reforms may be necessary to fully meet the needs of Americans.
