Kennedy and Warren's proposed legislation seek to construct additional affordable housing units
In the United States, the housing affordability crisis has been a pressing issue for many years. With record-high home prices and sales hovering near 30-year lows, a bipartisan legislative proposal, the Build Now Act, aims to address this problem by incentivizing local communities to increase housing supply.
The Act, part of the Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, was introduced by Senators Elizabeth Warren (D-MA) and John Kennedy (R-LA). It focuses on reducing costs, expanding housing production, and creating incentives for development in opportunity zones and transit-oriented areas, all while maintaining local control over land use.
The key mechanism of the Build Now Act is adjusting Community Development Block Grant (CDBG) funding allocations. Jurisdictions that show high rates of housing growth receive bonus funds, while those with low growth may face funding cuts. This approach ties federal funding to each city's rate of homebuilding, encouraging them to address the root cause of the country's housing affordability crisis.
The Act also provides a two-year grace period for cities to improve their housing development efforts. However, HUD would be required to proportionally reallocate the grant funding to cities that exceed the median, ensuring fairness in the distribution of funds.
The Build Now Act is not a standalone solution, but rather a part of a broader package. The ROAD to Housing Act of 2025 includes about 60 provisions aimed at overcoming development barriers. These provisions promote zoning reforms, such as legalizing duplexes and triplexes by-right, ending parking minimums, increasing floor-area ratios, and encouraging modular and manufactured housing as lower-cost alternatives to traditional building methods.
The Act's proponents, including Senators Warren and Kennedy, are optimistic about its progression through Congress and into law. Sen. Kennedy anticipates that the majority leader will bring the bill to the floor for a vote, and he believes it will pass in both the Senate and the House, and be signed into law by the president.
However, the Act is expected to be somewhat controversial in some cities. Sen. Kennedy acknowledges this, but believes that the benefits of increased housing supply and affordability will outweigh any initial resistance.
Klurfield, a housing analyst from the Bipartisan Policy Center, considers the bill a good first step toward solving the affordability issue, but notes that it will also have to be addressed locally. She suggests that the new housing bill could help communities break through restrictive zoning and land-use policies that have contributed to under-building housing since the Great Recession.
Recently, the National Association of Realtors reported that the median home price climbed to $435,300 in June, the highest ever recorded for the month. Sen. Warren believes changes are necessary to address housing affordability issues, as many cannot afford to buy homes and are stuck in tiny apartments or have no housing at all.
In conclusion, the Build Now Act is a significant step towards addressing the national housing affordability crisis. By providing financial incentives and regulatory reforms, it aims to increase local housing development efficiently and equitably, without undermining local authority. The Act's bipartisan support and the ongoing commitment of Congress to addressing housing affordability issues bode well for its potential success.
- The Build Now Act, a bipartisan legislative proposal, is not only focused on reducing costs and expanding housing production but also aims to intertwine finance, business, and politics to address the general-news issue of the housing affordability crisis in the United States.
- Supported by Senators Elizabeth Warren and John Kennedy, the Act proposes a combination of financial incentives and regulatory reforms, such as zoning changes, to encourage development in opportunity zones and transit-oriented areas, thereby impacting the national housing market and the broader economy.
