Trump refuses to sign bipartisan housing bill into law. What does that
mean for homebuyers, renters?
[June 25, 2026]
By ALEX VEIGA
LOS ANGELES (AP) — A sprawling legislative package aimed at lowering the
cost of housing and spurring more home construction won bipartisan
approval from Congress this week, but it's hit a major roadblock in
becoming law: President Donald Trump.
The White House supported the 21st Century ROAD to Housing Act, but on
Wednesday Trump canceled the signing ceremony for the bill, saying he
would not sign the measure until Congress passes legislation that would
require proof of citizenship for all voters.
Here’s what to know.
How significant is this housing legislation?
The measure is the culmination of months of negotiations by lawmakers
who combined dozens of bills meant to address how housing affordability
for both renters and aspiring homeowners in the U.S. has grown
increasingly out of reach for many Americans.
The bill would reduce federal regulations, streamline environmental
reviews, speed up the construction process and curb the influence of
corporate landlords by limiting their ability to purchase single-family
homes.
Still, it's not a silver bullet for all the factors that contribute to
reduced housing affordability, including lack of construction labor,
rising insurance costs and years of subdued wage growth relative to
sharply rising rents and home prices.
Even so, the bill has drawn broad support from the real estate industry,
including organizations representing homebuilders and apartment complex
owners, as well as housing advocates.
“We need more homes built, and legislation that removes construction
barriers is exactly what the market needs right now,” said Daryl
Fairweather, chief economist at Redfin. "Homebuyers who were hoping for
relief may have to wait even longer, and in a market already starved for
inventory, that’s a tough pill to swallow.”
What led lawmakers to pass the first major housing legislation in
decades?
Housing has grown into a hot-button issue among voters in recent years
as homeownership and rents in many areas have become less affordable for
many Americans.
The U.S. housing market has been in a slump since 2022, when mortgage
rates began to climb from pandemic-era lows. Sales of previously
occupied U.S. homes were essentially flat last year, stuck at a 30-year
low. While sales accelerated in May to their fastest pace since
December, they continue to hover close to a 4 million annual pace, far
short of the historic norm that is closer to 5.2 million, limited partly
by elevated mortgage rates.
Years of soaring home prices, especially in the early part of this
decade when rock-bottom mortgage rates fueled a buying frenzy, have left
many would-be homebuyers frozen out of the market. And a chronic
shortage of homes for sale nationally, due partly to years of
below-average new home construction, has helped prop up home prices even
in a multiyear sales slump.
Home prices have increased 54% nationwide since 2020, and last year the
median existing single-family sales price was nearly five times the
median household income, according to researchers at Harvard's Joint
Center for Housing Studies.
Renters, meanwhile, have seen little improvement in affordability. While
the median U.S. monthly rent has been declining for nearly three years,
it was still 17.2% higher in May than before the pandemic, according to
data from Realtor.com.
What if the bill doesn't become law?
One of the biggest hurdles to homeownership has been an imbalance
between supply and demand in many parts of the country.
When there are fewer homes on the market, that helps prop up home prices
even during a slowdown. Conversely, during times when mortgage rates are
low, buyers end up competing for fewer homes, which drives up prices.
The housing bill would help increase the supply of housing, particularly
when it comes to smaller, more affordable starter homes.
It amends existing regulations to boost construction of manufactured
homes, which tend to be more affordable than other types of newly built
homes, and expand access to government-backed loans to include
construction of standalone dwellings a homeowner can rent out.
[to top of second column]
|
Rep. Suhas Subramanyam, D-Va., left, and Rep. Maxwell Frost D-Fla.,
speaks at a desk prepared for President Donald Trump as an official
removes the presidential seal, after President Trump canceled the
signing the bipartisan Housing Bill on the Capitol Wednesday, June
24, 2026, in Washington. (AP Photo/Jose Luis Magana)
The bill also provides new dollars for communities to turn abandoned
infrastructure into housing, and provides guidelines for communities
that want to reform outdated zoning regulations, which often limit
larger housing developments.
“It won’t make housing more affordable overnight, but in the coming
years we will see more construction of town homes, multifamily
housing, and ADUs,” notes Fairweather, saying the additional supply
"will relieve the pressure on home prices, and make it easier for
homebuyers to break into the market.”
What about renters?
The legislation includes a broad set of provisions, including an
expansion of government rental assistance and affordable housing
construction programs , and measures aimed at encouraging state and
local governments to make it easier to build new homes and
apartments, including federal funding to places exceeding the median
rate of homebuilding.
In addition, the bill would raise limits on the number of public
housing units that can receive financing for renovations and codify
a recovery program to help expedite funds to communities rebuilding
after disaster.
It also requires new renter protections.
“Families are struggling under the heavy weight of housing costs
that have climbed for decades,” said San Diego Mayor Todd Gloria,
who is president of the U.S. Conference of Mayors. "There’s no time
to waste. Without federal action, America’s housing shortfall will
continue to grow, falling another 2 million units behind in the next
five years.”
What happens if the bill signing is held up for weeks or longer?
While hailed as a significant step, the federal government's power
to dictate things like how many homes are built or rents is limited,
given that most of the regulations on construction, such as zoning
laws, and other facets of real estate are determined by local and
state governments.
So, even if the bill is delayed, it's not like it would have had an
immediate impact on local house prices, for example. But it would
set back the clock on new construction projects that might not
otherwise get the go-ahead.
“The sooner this bill becomes law, the sooner builders and
homebuyers will benefit from its downstream effects,” said Danielle
Hale, chief economist at Realtor.com. “Even if the president were to
sign this bill immediately, many of the provisions will take time to
impact builder planning and projects in the pipeline, so there is
going to be a delay before consumers feel the impacts of this
legislation either way.”
What happens next?
Trump's decision to not sign the legislation into law Wednesday
could end up just temporarily delaying the measure from taking
effect.
The House passed the bill in a 358-32 vote on Tuesday and the Senate
passed it 85-5 on Monday. That level of support is what's
colloquially called a veto-proof majority.
Still, if Trump were to veto the measure, the Senate and the House
would have to vote again to override the veto.
It may not come to that.
Speaker Mike Johnson said Wednesday that he had spoken with Trump
earlier in the day and was confident the president would sign the
bill.
“The president, when we go through the details of the bill, he’s
going to understand that it’s a good product,” Johnson said.
All contents © copyright 2026 Associated Press. All rights reserved |
