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- Congress overwhelmingly passed a massive bipartisan affordable housing bill in June.
- President Donald Trump indicated he will not sign it into law.
- The bill will become law at midnight without Trump's signature, as long as he does not veto it.
YIMBYs and the abundance movement are set to notch a big national victory, as a landmark piece of housing legislation is set to go into law at midnight — without President Donald Trump's signature.
The House and Senate overwhelmingly passed the 21st Century ROAD to Housing Act in June, a 374-page document with sweeping changes to America's housing policies for the next few decades. Largely, the bill makes it easier and cheaper to build new homes, prevents big corporations from swallowing supply, and supports communities most affected by the climate crisis.
The bill hit a stumbling block June 24, after Trump indicated he wouldn't sign it into law. Instead, he wanted Congress to pass the SAVE America Act, a federal election bill requiring documented proof of US citizenship to vote that had failed to pass the Senate.
"Today's Housing News Conference and Signing is hereby cancelled until such time as we pass the desperately needed SAVE AMERICA ACT, which I consider to be a National Emergency," he posted that day on Truth Social.
After a bill is approved and presented to the President by Congress, the executive is given 10 days, excluding Sundays, to veto or sign it before it automatically becomes law.
Trump posted on Friday, the last day he had to sign the bill, that he would not in continued protest.
"THE SAVE AMERICA ACT'S non-passage is CRAZY, and a serious threat to any politician who votes against it!" he posted on Truth Social.
In consequence, the bill will become law at midnight, without his signature, unless he vetoes it before then.
Championed by Democrats and Republicans alike, it's a rare bipartisan win ahead of midterms and builds on headline-making affordable housing successes in cities like Austin, Minneapolis, and New York.
Our Cost of the City series has reported on some of the new affordable housing policies in New York City, and focuses on telling the stories of how different New Yorkers make it work in one of the most expensive cities in the country.
Business Insider spoke with economists and real estate analysts for their biggest takeaways on what the bill would mean for you when it finally becomes law.
Pushing down the cost of housing supply with looser building regulations
A central driver of America's housing problem is supply. There are millions of lower- and middle-income households looking to rent and buy, but not enough affordable places to live. It leaves public housing wait lists overflowing, and expensive homes across the country sitting vacant.
Emma Waters, senior policy analyst at the Bipartisan Policy Center, said the bill focuses on addressing the supply gap by making it easier and faster to build housing at a lower cost. Yet, it will take time to feel these positive impacts.
"It's not going to be an overnight solution," she said. "If we are able to bring that new supply online, that will have an effect on prices for home ownership and also for renters."
The ROAD to Housing Act is set to loosen some federal zoning regulations that prevent the construction of new affordable housing. This looks like encouraging more mixed-use buildings, cutting restrictions on alternative housing solutions like accessory dwelling units and manufactured homes, and instituting tax incentives for cities developing in densely populated areas. It also removes some of the red tape that has historically stopped these projects from being greenlit.
On the construction side, the bill revises minimum lot, building height, and floor-area ratio requirements that limit the number of units in a single development. It also outlines construction and repair grants available to state through federal funding, especially those supporting low-income households.
More resources for climate-impacted communities
As more parts of the country become vulnerable to natural disasters, the bill includes policies to support affected residents. It includes standardized efforts to assess and plan for resilient land use, as well as ways to address emergency and transitional housing needs in the event of a disaster. The bulk of these resources will be allocated to low-income areas. The policy also bolsters existing federal funding for relief and redevelopment in areas devastated by floods and wildfires.
Joel Berner, senior economist at Realtor.com, highlighted the bill's authorization of a new program within the US Department of Housing and Urban Development, which coordinates recovery efforts in the event of disasters.
"Low-income households, rural communities, and veterans are explicit beneficiaries," he wrote in an email statement.
The bill also creates a pilot program to assess temperature-related housing complaints in federally funded rental units, with the goal of making the spaces more livable for residents.
Restrictions on corporations buying residential real estate
As lawmakers put it, "homes are for people, not corporations." The bill imposes limits on the number of single-family homes large institutional investors can purchase, intended to make it easier for people to rent and buy affordable homes. This has been a pet policy of Trump, who advocated for it last winter with an executive order.
However, evidence indicates that institutional investors have little impact on home affordability. Major investors own only about 2 or 3% of the country's single-family rental housing stock, which doesn't impact consumers much in most markets.
It's unclear how much the outlined policies and grants will actually affect prices for renters and buyers and how quickly. Interest rates remain elevated, contributing to 30-year fixed mortgage rates above 6%, and median rents are at record highs — with an especially bleak outlook in high-cost cities. Improving housing supply will help, though it doesn't guarantee that the new housing will be available at prices that lower- and middle-income Americans can pay. Local cities and municipalities may also have their own building restrictions, which this federal law can't override.
"This is something that I think voters have been asking for for a long time," Waters said. "I do think this is hopefully an indicator of forward momentum, and I think there is a recognition that there's still more to be done on housing."