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By Vanguard Staff
WASHINGTON, D.C. — A bipartisan group of federal lawmakers has introduced new legislation aimed at reducing the red tape that many in the housing industry say is driving up costs and fueling the nation’s deepening affordability crisis. The Identifying Regulatory Barriers to Housing Supply Act, backed by Senators Todd Young (R-Ind.) and Brian Schatz (D-Hawaii) and Representatives Mike Flood (R-Neb.) and Brittany Pettersen (D-Colo.), seeks to investigate and address outdated zoning and permitting regulations that hinder the construction of new rental housing.
National housing industry leaders hailed the proposal as a long-overdue step toward tackling the root causes of a nationwide housing shortage. In a joint statement, the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) praised the measure and urged swift action.
“We are pleased to see the introduction of the Identifying Regulatory Barriers to Housing Supply Act, legislation that will bring attention to barriers on housing development and help address the nation’s housing affordability crisis if signed into law,” the two organizations stated.
The Act would direct the federal government to identify and analyze state and local policies that restrict new housing development, including exclusionary zoning laws, burdensome permitting timelines, and complex building codes. While the bill does not impose federal mandates, it is designed to shed light on local and state-level barriers and offer recommendations for reform.
Supporters argue that without significant regulatory reform, meeting the nation’s housing needs will remain out of reach. NMHC and NAA cited research indicating that the United States must add 4.3 million new apartment units by 2035 just to keep pace with demand. However, developers across the country face mounting obstacles that make building new units increasingly difficult and expensive.
“There is no doubt that communities across the country are facing serious housing affordability challenges,” the groups said. “This critical legislation will encourage localities to address outdated and burdensome zoning, permitting and building regulations.”
The announcement comes as housing affordability continues to worsen nationwide, affecting not only traditionally high-cost coastal markets but also mid-sized cities and rural areas. The National Low Income Housing Coalition reports that nearly 11 million renter households are considered extremely low-income, with fewer than four million affordable and available homes to serve them.
A February 2025 report commissioned by NAA and co-authored by economists Daniel Shoag and Issi Romem, titled Behind the High Cost of Rent, lends support to the industry’s concerns. The study analyzed data from 2004 to 2019 and found that a range of rental regulations—intended to protect tenants—often lead to unintended consequences for housing providers, including increased operational costs, reduced revenues, and ultimately, higher rents for tenants.
According to the report, source-of-income laws, eviction restrictions, and resident screening limitations all contribute to financial strain on rental operators. In particular, jurisdictions with source-of-income laws saw a 10 percent increase in vacancy-related revenue losses and a 12 percent rise in collection losses, while strict eviction rules were linked to a 33 percent increase in losses due to concessions.
“While renter protections can contribute to promoting housing equity and security, their associated costs can discourage new construction and reduce the long-term supply of affordable housing,” the study concluded.
Conversely, the research found that state preemption laws—statutes that limit the authority of local governments to pass restrictive rental housing ordinances—had the opposite effect. In those jurisdictions, housing providers reported increased revenues and capital investments, along with decreased reliance on rent concessions to attract tenants.
For federal lawmakers, the challenge lies in balancing the need for local control with the national urgency of addressing housing affordability. The Identifying Regulatory Barriers to Housing Supply Act stops short of overriding local rules but could serve as a tool to spur state and municipal governments to reevaluate policies that impede new construction.
Industry representatives said the legislation could be a first step toward a broader, bipartisan conversation about how to increase housing supply while maintaining reasonable protections for tenants.
“On behalf of rental housing providers and the 40 million Americans who live in apartment homes, NMHC and NAA look forward to continuing to work with lawmakers in both parties to advance legislation aimed at achieving real solutions to the housing affordability crisis,” the statement said.
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Breaking News Housing State of California
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Economists Daniel Shoag and Issi Romem Federal Lawmakers Housing Crisis National Apartment Association National Multifamily Housing Council Regulatory Barriers to Housing Supply Act Rental housing providers State and local governments