ROAD to Housing Act: How it may impact real estate

First Citizens Wealth INTEL: Insights and News—Taxation, Election & Legislation

Each month, we'll cover time-sensitive updates on tax, election and legislative developments that could affect you.

What is the 21st Century ROAD to Housing Act?

The 21st Century Revitalizing Opportunities and Advancing Development, or ROAD, to Housing Act is proposed legislation designed to address housing affordability and expand access to homeownership in the US. Recently passed by the Senate and now under consideration in the House of Representatives, the bill focuses on increasing the housing supply and reducing barriers for buyers through a mix of policy reforms, targeted financial support and community development.

As an affordable housing bill with bipartisan backing, the ROAD to Housing Act aims to create a more balanced and accessible real estate market.

Who does the ROAD to Housing Act impact?

If signed into law, the effects of this legislation will extend across the housing market, with several groups likely to see the greatest impact.

Homebuyers

An increase in the housing supply—driven by incentives for new construction and redevelopment—could moderate the growth of home prices, especially in highly competitive markets. The bill also creates a targeted fund for down payment assistance designed to help lower barriers to entry for certain first-time homebuyers. It also authorizes a pilot program for renovation grants and other financing support that may make older homes more accessible and affordable for eligible buyers.

Current homeowners

While supply increases may limit the pace of appreciation for existing homeowners, the potential for new renovation incentives may provide opportunities to improve properties and potentially increase value.

Real estate investors and developers

The act includes supply-side incentives aimed at encouraging development, particularly in underserved areas such as rural, economically distressed and low-income communities, as well as regions impacted by disasters. Developers focused on affordable or mixed-use housing may gain access to favorable financing terms and program support, potentially reducing the financial risk of these projects. Local governments that relax zoning laws could spur new development opportunities.

The legislation also places new restrictions on large institutional investors—defined as entities with investment control of 350 or more single-family homes—limiting additional purchases unless specific conditions are met, such as build-to-rent and renovate-to-rent programs. In some cases, these provisions are designed to encourage properties to be sold to individual buyers over time.

What should you do before the bill becomes a law?

The bill earned broad bipartisan support in the Senate with 89 yes votes, but it still requires approval from the House and the president's signature before becoming law. However, proactive planning can help individuals take advantage of the potential changes.

Homebuyers

Prospective buyers should monitor their eligibility for new programs and incentives. Consulting mortgage and financial advisors early may help clarify available opportunities. Timing is critical because some provisions may include specific enrollment periods or funding caps.

Investors

While the proposed housing bill doesn't include tax incentives for individual homeowners and homebuyers, it does provide tax and financing incentives that may benefit investors, developers and local governments. Aimed at expanding the supply of affordable housing, these incentives may help encourage new construction and redevelopment.

Investors should evaluate how potential shifts in housing supply and demand, along with policy changes, could influence property values and rental yields. Reviewing current holdings and considering adjustments ahead of implementation may keep portfolios aligned with emerging market trends if the act becomes law. Monitoring implementation timelines is also important for investors because certain provisions may take effect immediately, while others may roll out over months or years.

Who to talk to now

Navigating legislative changes in the housing market can be complex for both homebuyers and experienced investors. When exploring opportunities, connecting with experienced financial professionals can help buyers and investors understand how these developments may fit into a broader financial strategy.

Whether you want to secure a mortgage for your first home or optimize your real estate investment portfolio, a First Citizens Wealth consultant can work with a mortgage banker or consult you directly to help evaluate your options and refine your financial plans.