Congress Approves Bipartisan Legislation to Help Increase Housing Supply

Congress has approved the 21st Century ROAD to Housing Act, a wide-ranging housing package aimed at increasing housing supply, expanding homeownership opportunities, and reducing barriers to development.

The legislation passed both chambers of Congress with broad bipartisan support in late June, including an 85-5 vote in the Senate and a 358-32 vote in the House.

The bill now heads to the president’s desk for signature.

The package includes incentives designed to encourage new housing development, expand access to financing for residential construction and development projects, reduce regulatory barriers, and provide grant opportunities for localities to help communities build more houses.

The legislation comes as housing affordability and availability continue to challenge communities across Kentucky. The Kentucky Chamber and Home Builders Association of Kentucky’s 2024 report, Building a Foundation for Growth: Meeting Kentucky’s Current and Future Housing Needs, found that home prices are rapidly outpacing household incomes. In some areas of the state, the median sale price of a single-family home is now 5.1 times the median household income, compared to 2.4 times the median household income 30 years ago. The report also found the Commonwealth faces a housing shortage of up to 206,000 units and that nearly 90% of local leaders surveyed said their communities would struggle to meet housing demand generated by a major economic development project.

Housing affordability and availability have received increased attention from policymakers, employers, and community leaders in recent years. Kentucky formed a legislative Housing Task Force in 2024 to study the issue, which led to the introduction of a comprehensive housing package during the 2026 legislative session.

“Housing is critical to Kentucky’s economic future. The Kentucky Chamber supports the 21st Century ROAD to Housing Act and its efforts to increase housing supply, expand homeownership opportunities, make housing more attainable for families, and streamline permitting processes that can delay development. More housing means more opportunity for workers, stronger communities, and the ability for Kentucky employers to attract and retain the talent they need to grow. The Kentucky Chamber appreciates Congressman Andy Barr’s leadership in advancing this legislation and those members of Kentucky’s federal delegation who supported this bipartisan legislation,” said Kentucky Chamber President and CEO Ashli Watts.