Statement of Pioneer Institute on ROAD Housing Act

“As the federal ROAD to Housing Act becomes law tonight, it marks the most comprehensive supply-focused federal housing legislation in decades. Pioneer Institute applauds the Act’s focus on spurring housing production and ultimately improving housing affordability nationwide.  

While there is a limited role for the federal government in addressing the country’s harrowing housing challenges, several aspects of this legislation are well within the jurisdiction of Congress and the Trump administration and are worth celebrating. For example, the Act removes the federal requirement that manufactured housing (known as “mobile homes”) be secured to a permanent chassis, an outdated standard that raised costs for the most attainable housing type available in many communities.  

The new law also streamlines the environmental review process for several categories of housing development receiving federal funding. One of those funding streams, the Community Development Block Grant program, will now incentivize recipients to build more homes by adjusting funding formulas based on recent local housing production.  

One of the most notable aspects of the Act is a ban on institutional investors owning more than 350 single-family homes at a time. At best, this policy attacks a symptom of the problem. Large institutions may take advantage of a longstanding housing supply-demand imbalance as an investment strategy, but research suggests that their contribution to housing price increases is negligible in most markets. As of 2024, 0.2 percent of single-family homes in Greater Boston were owned by institutional investors.   

That said, the final ROAD to Housing Act includes a provision that would exempt build-to-rent developments from the institutional investor ownership limitations. This exemption is important to maintain the Act’s pro-supply stance, as single-family home developments intended to be rentals contribute greatly to new housing production in many parts of the country.  

More broadly, ensuring sufficient housing construction to serve America’s evolving needs remains primarily a concern of state and local affairs. Pioneer Institute will continue to advocate for necessary reforms to zoning laws, permitting procedures, building codes, and environmental regulations to ensure an adequate and reasonably priced home is available to every family.”