Generated Image
A new editorial from Bloomberg Opinion is calling on Congress to take the lead in addressing America’s worsening housing crisis, urging lawmakers to pass bipartisan legislation aimed at boosting the nation’s housing supply.
The editorial takes direct aim at the president’s frequent criticism of the Federal Reserve, which he has blamed for making it too expensive for Americans to buy a home. The Fed’s decision to maintain higher interest rates has pushed mortgage costs upward, but Bloomberg argues that while rates have created real barriers to affordability, they are not the root of the problem.
“Sky-high housing costs are a top concern for many Americans,” the editorial states. It points to record-setting median home prices in the wake of the pandemic that reached their highest level in at least half a century when measured against household incomes. At the same time, rents have also outpaced wages, leaving millions of Americans struggling to keep pace with the cost of living.
The Federal Reserve’s role is not insignificant. According to the editorial, the 30-year fixed-rate mortgage averaged 6.72% at the end of July, a sharp rise from the 4.46% average over the previous decade. This increase has further strained household budgets and made it even harder for renters to transition into homeownership. But while high rates play a role, Bloomberg’s editors contend that the larger, structural issue is the country’s chronic housing shortage.
The shortage dates back to the aftermath of the 2008 global financial crisis, when new construction slowed to a crawl. That slowdown, combined with years of underbuilding, produced a national shortfall of nearly four million homes, according to one estimate cited in the piece. Only recently has housing construction begun to show signs of recovery, but the deficit remains severe.
In addition to construction lags, the editorial criticizes the impact of restrictive zoning and land-use policies, often fueled by local opposition to new development. These “not-in-my-backyard” rules in cities such as San Francisco and New York have long stymied the creation of affordable housing. Rent regulations, the piece argues, have also contributed to bottlenecks that have slowed supply and distorted markets.
While some states and cities have begun to push back against these barriers by easing zoning rules and encouraging more building, the changes have not been broad enough to address the scope of the crisis. The editorial highlights Austin and Minneapolis as examples of cities where reforms have helped boost housing construction and lower costs, but it stresses that federal action is still urgently needed.
That is where the Renewing Opportunity in the American Dream (ROAD) to Housing Act comes in. At 315 pages, the sprawling piece of legislation seeks to tackle the supply-side constraints that are fueling the affordability crisis. The bill, which received unanimous approval from the Senate Banking Committee, represents one of the most ambitious federal housing packages in years.
Among its provisions, the ROAD to Housing Act would streamline environmental reviews required for federally funded housing construction projects, an effort to reduce delays and bureaucratic obstacles that can hold up development for years. The bill would also remove long-standing restrictions on manufactured housing, eliminating the requirement that such homes be mounted permanently on fixed chassis — a rule that the editorial called “absurd” for adding unnecessary costs and limiting design flexibility.
The legislation goes further by offering financial incentives to communities that prove they are accelerating housing production. Localities that demonstrate success in permitting and building new homes would be rewarded with larger federal block grants, creating a direct link between pro-housing policies and federal resources.
A $200 million innovation fund within the bill is intended to help local governments experiment with new approaches to expanding supply, such as pilot programs, partnerships, or policy reforms. In addition, the legislation includes federal support for local governments in developing and implementing pro-housing strategies, with bipartisan sponsors already backing the effort in the House.
Despite these steps, Bloomberg’s editors acknowledge the bill is not perfect. Its provisions are cobbled together from 27 earlier bills, resulting in what the editorial calls a “case study in sausage-making.” With 40 different components, some measures appear overly burdensome, imposing requirements on federal agencies for annual testimony, monthly reports, and various studies. The editors suggest that streamlining these elements could reduce administrative costs and allow agencies to focus squarely on the core mission of increasing housing availability.
Still, the editorial argues, the bill’s broader framework represents meaningful progress. “In an era of partisan and often ill-advised policymaking, the fact that 24 senators with profoundly disparate ideologies united to pass a worthwhile legislative package deserves to be celebrated,” the piece states.
The bill has already attracted backing from a broad coalition of industry and policy groups, including national organizations representing home builders, real estate agents, mortgage bankers, and county governments. The Bipartisan Policy Center has also endorsed the measure, underscoring its appeal across political lines.
The editorial board calls on the president to align himself with these efforts. By supporting the ROAD to Housing Act, the piece argues, the president would be taking a practical step toward addressing an issue that cuts across partisan divides and affects households in every corner of the country. The editors add that while the legislation is not a complete solution, it is “a step — even if a slightly wobbly one — in a better direction.”
Housing affordability consistently ranks among the top concerns for voters nationwide. Rising rents and home prices, combined with stagnating wages, have left millions of households cost-burdened, meaning they spend more than 30% of their income on housing. The crisis has been linked to increases in homelessness, lower rates of homeownership among younger generations, and deepening inequality between homeowners and renters.
For Bloomberg’s editors, the lesson is clear: piecemeal state and local reforms will not be enough to address a national problem of this scale. Federal action, particularly legislation that reduces regulatory barriers and rewards pro-housing communities, is necessary to close the supply gap and restore affordability.
The editorial underscores the rare bipartisan momentum behind a major housing initiative at a time when Congress is more often defined by partisan stalemate. Whether the bill advances beyond the committee stage and passes both chambers remains to be seen, but the Bloomberg editorial signals growing pressure on lawmakers — and the president — to act on housing.
Follow the Vanguard on Social Media – X, Instagram and Facebook. To learn make a tax-deductible donation, please visit davisvanguard.org/donate or give directly through ActBlue. Your support will ensure that the vital work of the Vanguard continues.
Categories:
Breaking News Housing State of California
Tags:
Affordability bipartisan legislation Bloomberg Opinion Housing Crisis ROAD to Housing Act zoning reform