Trump and Warren clash over bipartisan housing bill as it heads toward becoming law Friday
A major bipartisan housing bill aimed at easing America’s housing affordability crisis is expected to become law Friday; even if President Donald Trump never signs it.
The 21st Century ROAD to Housing Act cleared Congress with overwhelming bipartisan support, but Trump unexpectedly halted a planned signing ceremony last week, arguing lawmakers should instead focus on the SAVE America Act, a voter identification proposal that currently lacks enough support to pass the Senate. Unless Trump issues a veto before Friday’s deadline, however, the housing legislation is set to become law automatically under the U.S. Constitution.
The measure has been hailed by supporters as the most significant federal housing package in years, while critics question whether one of its most high-profile provisions will meaningfully improve affordability.
Congress overwhelmingly approved the housing package
The House of Representatives voted 358-32 to approve the 21st Century ROAD to Housing Act after the Senate previously passed the legislation by an 85-5 margin.
The unusually broad bipartisan support reflects the growing urgency surrounding America’s housing affordability crisis. Major bipartisan legislation has become increasingly uncommon in Washington, making the measure one of the most notable examples of cross-party cooperation in recent years.
House Speaker Mike Johnson formally presented the bill to President Trump on June 29, beginning the constitutional review period for presidential action.
Although Trump has so far declined to sign the legislation, the bill is still expected to become law Friday.
Under the U.S. Constitution, when Congress remains in session, a president has 10 days; excluding Sundays; to sign or veto legislation after it is formally presented. If neither action is taken before that deadline, the bill automatically becomes law without the president’s signature.
Trump could still veto the legislation before Friday. However, because the measure passed Congress by overwhelming bipartisan margins, lawmakers could potentially override a presidential veto if sufficient support remains.
Housing affordability has become a nationwide crisis
Lawmakers say the legislation responds to years of worsening affordability that have pushed homeownership beyond the reach of many Americans.
Home sales have remained sluggish since falling to a 30-year low in 2023, while the median U.S. home price remains above $400,000. According to Realtor.com, the median home listed for sale reached approximately $430,000 in June, more than 34% higher than in mid-2019.
According to Redfin, a household now needs to earn nearly $117,000 annually to afford the typical home for sale; roughly $30,000 more than the income earned by the average American household.
Rent has also climbed sharply. Zillow reports the median asking rent is now around $1,951 per month, up roughly 40% from $1,392 seven years ago.
The shortage has also delayed homeownership for younger buyers, with the average first-time homebuyer now reaching 40 years old.
America remains millions of homes short. Supporters of the legislation argue that the country’s housing shortage is the central driver behind rising prices.
The United States is estimated to face a shortage of approximately 4.7 million housing units, a gap created over years of underbuilding, supply chain disruptions, rising construction costs and higher borrowing costs.
During House debate, Financial Services Committee Chairman French Hill emphasized the scale of the challenge.
“America is facing a housing supply shortage that’s been years in the making,” Hill said.
Fresh survey data released this week also showed housing demand remains resilient despite affordability challenges, with a majority of Americans saying they would rather buy a home than rent or move in with relatives for the first time since 2023.
Bill aims to boost construction and expand homeownership
Senator Elizabeth Warren, one of the legislation’s leading Democratic supporters, highlighted the provision after Congress passed the bill.
“This bill helps us demonstrate our commitment to bringing down costs,” Warren said. “We’re not in the majority, but we got in there and fought for 47 different provisions to lower costs for American families and to beat back private equity, and we made it happen.”
The legislation contains dozens of provisions intended to encourage residential construction and improve access to affordable housing.
Supporters say it would streamline regulations that frequently delay projects while modernizing banking rules affecting mortgage lending.
Among the most significant provisions are measures that would:
– Streamline complex environmental review requirements for qualifying housing developments.
– Expand funding and incentives for communities that increase housing construction.
– Encourage municipalities to reform restrictive zoning policies and improve regional housing planning.
– Make it easier for banks and credit unions to issue mortgages.
– Expand access to manufactured and modular housing.
– Reduce regulatory barriers that increase construction costs.
Supporters argue these changes could help increase housing supply over time and ease upward pressure on prices.
Investor restrictions become one of the bill’s most debated provisions
One of the bill’s highest-profile sections targets large institutional investors in the single-family housing market.
The provision, titled “Homes Are For People, Not Corporations,” would prohibit investors owning more than 350 single-family homes from purchasing additional single-family houses.
The measure reflects bipartisan concerns that Wall Street firms have reduced opportunities for traditional homebuyers in some markets.
Economists question whether the bill will lower housing costs
While lawmakers from both parties backed the investor restrictions, several housing economists cautioned that the policy may have only a limited effect on affordability.
Institutional investors own roughly 3% of the nation’s single-family rental market, according to economists cited by Fortune.
Rental housing economist Jay Parsons argued that many renters served by institutional landlords are not currently in a position to become homeowners regardless of investor ownership.
“People want to identify a boogeyman that can say: ‘Hey, this is the problem, and give me an easy button to solve it right now,'” Parsons previously told Fortune. “It’s an emotionally satisfying answer, even if it’s not a real solution.”
He added:
“These are real people, real families, who live in these homes, and the assumption and the narrative is they would be homeowners, if not for the fact that the investors own these houses. The reality is that most of them can’t.”
According to 2026 Amherst Group data cited by Fortune, the average single-family renter has a household income of $88,000 and a 650 FICO score, compared with more than $150,000 in income and a 730 FICO score for the average single-family homeowner.
Rental industry warns of unintended consequences
Opponents of the investor restrictions argue the provision could reduce rental housing supply rather than improve affordability.
The National Rental Home Council, whose members include some of the nation’s largest single-family rental companies, warned that limiting institutional ownership could slow construction of rental homes and reduce housing options for lower-income families.
Industry representatives also note there are approximately 1 million fewer single-family rental homes today than a decade ago, while the share of single-family homes used as rentals has gradually declined since 2014, according to a 2025 National Association of Realtors analysis.
Some economists also point to rising mortgage delinquency rates among lower-income borrowers as evidence that many renters still face substantial barriers to homeownership beyond housing supply alone.
Trump calls the bill “a yawn” as he pushes voting legislation
Despite the overwhelming bipartisan support, Trump declined to sign the legislation and instead urged Congress to prioritize the SAVE America Act, legislation addressing voter identification and mail-in voting.
In a Truth Social post, Trump wrote: “The Elizabeth ‘Pocahontas’ Warren centric housing bill, which is of minor importance compared to lower interest rates, and even FISA, pales in comparison to passing THE SAVE AMERICA ACT.”
He later told reporters the housing legislation was “so unimportant” and “a yawn” compared with the election bill.
Trump also urged Senate Republicans to consider eliminating the legislative filibuster.
“Get the bad Republicans to approve it or, better yet, Terminate the Filibuster and approve it, AND EVERYTHING ELSE REPUBLICANS HAVE EVER DREAMED OF.”
He further warned: “The Dumocrats will do it in hour one, 100%. Republicans will feel very stupid if they don’t do it first. I’ll be watching with tears in my eyes!!!”
Senate Majority Leader John Thune has said Republicans currently do not have enough votes to pass the SAVE America Act.
Warren keeps pressure on Trump
Since Congress approved the legislation, Warren has repeatedly urged Trump to allow it to become law.
Among her posts on X, she wrote: “We passed a massive, bipartisan bill to lower housing costs and stop private equity from gobbling up homes.
But Donald Trump won’t sign it.”
She also posted: “We are in a housing emergency all across this country.
Prices are up because we have not built enough housing over the last few decades.
We need millions more units in the United States.
Why is Trump holding up the bipartisan housing bill?”
Later she added: “Tick tock, Mr. President.
The American people are waiting for lower housing costs.”
After House Speaker Mike Johnson transmitted the legislation to the White House, Warren continued criticizing the delay, writing: “It’s been a week and the President still hasn’t signed the bipartisan housing bill.
Donald Trump does not care if you can afford to buy a house.”
She also highlighted Republican support for the measure, posting: “Last week, Congress passed a bipartisan bill to lower housing costs. Now, Trump is refusing to sign it. Listen to the President’s own Republican Party talk about the bill that’s gathering dust on his desk:”
In another post promoting the legislation, Warren wrote: “Our bipartisan housing bill is a big deal for cities across this county. Just one example: it would reduce the cost of a new manufactured home by up to $10,000.
Americans don’t have to time to wait. Republican and Democratic mayors have a united message: let’s get it done!”
Broad support extends beyond Congress
The legislation has attracted support from mortgage lenders, homebuilders, civic organizations and affordable housing advocates, all of whom argue that increasing housing supply is essential to improving affordability.
Public support also appears strong. A recent poll by the American Property Owners Alliance, a nonprofit funded by the National Association of Realtors, found that 89% of registered voters support the legislation.
Still, analysts caution that the measure is unlikely to produce immediate results because many housing regulations remain under state and local control.
Morgan Stanley strategists led by James Egan wrote in a June research note: “The impact of these changes should be incrementally positive for demand and, depending on implementation, potentially more positive for supply, but those changes will take time.”
What happens next
Unless President Trump issues a last-minute veto before Friday’s constitutional deadline, the 21st Century ROAD to Housing Act is expected to become law without his signature, marking one of the most significant bipartisan housing measures Congress has approved in years.
Supporters believe the legislation could gradually increase housing supply, reduce construction barriers and improve affordability by making it easier to build and finance homes.
Critics, however, argue that restricting large institutional investors may have only a limited effect on home prices while reducing rental housing options for families that are not yet financially prepared for homeownership, meaning the bill’s long-term success will ultimately depend on how effectively its provisions are implemented by federal, state and local governments.
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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