The New Housing Law Was Supposed To Help Buyers—Here’s Why Delays Are Coming Instead

Three months after the most comprehensive housing bill in decades became law, the agencies tasked with implementing it are still getting their bearings on what's next.

The 21st Century Road to Housing Act proved a political roller coaster this year as it was closely debated in the House and Senate, breaking multiple deadlocks. Then, President Donald Trump, who initially championed it, stepped back amid other political priorities. But the final passage of the bill laid the groundwork for dozens of new provisions aimed at making it easier to buy a home.

While the bill officially became law 10 days after it was submitted to the White House, it will be some time before some parts of the country see its impacts. And they come at a time when the involved government agencies are seeing cuts in funding.

No one provision of the bill takes effect on its own. It will be up to federal agencies to write new rules and guidance. And some of that could mean new notices and programs that take some time to create.

The bill created about a dozen programs on paper, but they need new funding, which will need to come from future congressional approvals. Because it came after the 2027 House budget, some programs might not receive funding until fiscal year 2028, said Kristen Klurfield, associate director for housing at the Bipartisan Policy Center.

In the meantime, the U.S. Department of Housing and Urban Development is responsible for 88 of the 125 implementation items. It's also added nine new proposed rules to its agenda. Proposed rulemaking, which is subject to public notice and comment during its formulation, can take 18 to 24 months to finalize.

HUD's seen major staffing cuts, including losing 650 full-time equivalents in the Federal Housing Administration and other housing units, a 27% decrease. Public and Indian Housing has lost 29% of its headcount, or 419 full-time equivalents, according to data from the National Association of Affordable Housing Lenders.

Lesli Gooch, CEO of the Manufactured Housing Institute, laid out the long road ahead. While the federal government updates the building code to address changes to manufactured housing, states need to update their own licensing, zoning, and other laws.

"It means there is time to prepare," said Liz Osborn, vice president of policy at Enterprise Community Partners. "So state and local governments that are looking to take advantage of those opportunities, I would suggest that there's opportunities now to be working in advance to increase housing supply and set themselves up for success."

Hot potato for the midterms

Since the bill's passage, lawmakers have campaigned heavily on the bipartisan nature of the bill as both Democrats and Republicans tighten affordability-focused messages for the midterms.

“Everywhere I go, I hear from families struggling to find housing they can afford," Rep. Jim McGovern (D-MA) said after a round-table with housing advocates on Tuesday at a YMCA in Worcester, MA, nodding to Sen. Elizabeth Warren (D-MA), who helped shepherd the bill in the Senate. "I’m grateful to Sen. Warren for her leadership in getting this important legislation passed."

"Committee Republicans have put in the hard work to advance bills strengthening our capital markets, modernizing regulation, expanding housing supply, supporting community financial institutions, and promoting American leadership in financial innovation," Rep. French Hill (R-AR), another of the bill's shepherds, said at a DC hearing last week aimed at lauding the Trump administration's policies.

In doing so, lawmakers have once again taken aim at one another for perceived slowness to act on the affordability metrics. In a letter this month, Warren took aim at Bill Pulte, director of the Federal Housing Finance Agency, for not codifying rules constraining institutional investors in the housing market.

Trump signed an executive order calling for the government to move away from financing housing involving institutional investors. The housing bill added further requirements for that discouraged investor activity.

"While 'Road' takes a strong first step toward returning homeownership opportunities to the American people, there is more that HUD and FHFA can and should do to limit the role of large institutional investors in housing, including in multifamily and manufactured housing," Warren wrote.