A bipartisan housing package known as the 21st Century ROAD to Housing Act became law on Saturday after President Donald Trump did not sign or veto it within the required time. The measure, which Congress passed on June 23, is designed to improve affordability by encouraging more home construction, widening access to financing and placing limits on certain purchases by large institutional investors.
What the law changes
Among the most closely watched provisions is a restriction on large institutional investors that already own at least 350 single-family homes. Under the law, those firms generally cannot buy additional single-family homes, although there are exceptions for some build-to-rent and renovate-to-rent projects, as well as programs intended to help renters improve credit and eventually become homeowners.
Another section broadens the federal definition of manufactured housing to include homes built without a permanent steel chassis. The goal is to reduce barriers to factory-built housing, which is often one of the lower-cost paths to ownership. According to the report, the law also seeks to push local governments toward zoning and land-use changes that could make it easier to build more homes.
Even so, housing experts say the effects are likely to unfold gradually. Home prices remain near record levels, 30-year fixed mortgage rates are still above 6.5%, and the median price of an existing U.S. home reached $440,600 in June, according to the National Association of Realtors. Realtor.com estimates the country still faces a shortage of about 4 million homes. Analysts say the legislation addresses some of the main sources of housing costs, but it is unlikely to deliver immediate relief for homebuyers or sellers.
Source: cnbc.com
