A sweeping federal housing package that could become the most significant housing legislation in decades is now nearing final approval in Congress, setting the stage for major changes that could affect homebuyers, investors, builders, and real estate professionals across South Carolina and the nation.

At the center of the debate is the 21st Century ROAD to Housing Act (Renewing Opportunity in the American Dream Act), a bipartisan housing reform package that has steadily gained momentum throughout 2026 as lawmakers search for solutions to America's housing affordability crisis. The legislation is based on H.R. 6644 and combines dozens of housing-related proposals into a single comprehensive package designed to increase housing supply, encourage construction, modernize federal housing programs, and limit the influence of large institutional investors in the single-family housing market.

The legislation was championed by a bipartisan coalition that includes Senator Tim Scott and Senator Elizabeth Warren, whose unlikely partnership helped push the housing package through Congress amid growing concerns over affordability and declining homeownership opportunities.

A Housing Crisis Years in the Making

The bill arrives as housing affordability continues to dominate conversations among policymakers, REALTORS®, builders, and prospective homebuyers.

For years, housing experts have warned that the United States faces a severe shortage of available homes. Rising construction costs, restrictive zoning policies, labor shortages, permitting delays, and population growth have all contributed to a market where housing supply has struggled to keep pace with demand.

At the same time, large institutional investors have dramatically expanded their presence in residential real estate.

Private equity firms, hedge funds, and corporate landlords have purchased tens of thousands of homes nationwide, particularly in fast-growing Sun Belt states. Critics argue that these investors have increased competition for starter homes, pushed prices higher, and made it more difficult for first-time buyers to enter the market.

South Carolina has been directly affected by these trends.

Markets such as Charleston, Greenville, Myrtle Beach, Hilton Head, and rapidly growing suburban communities have experienced significant investor activity over the past several years as migration from higher-cost states fueled demand for both owner-occupied housing and rental properties.

The Most Controversial Provision: Restrictions on Institutional Investors

One of the most debated sections of the legislation is Section 901, which targets large institutional investors operating in the single-family housing market.

The Senate version of the bill included strict limitations on investors that own more than 350 single-family homes, effectively preventing those firms from continuing to acquire additional homes in certain circumstances. Earlier versions also contained provisions that would have required some investor-owned rental homes to be sold within seven years, triggering intense opposition from developers, builders, and rental housing groups.

Supporters argue that institutional investors have transformed housing into a financial asset and have unfairly competed against families trying to purchase homes.

The issue gained national political attention earlier this year when lawmakers from both parties publicly criticized Wall Street's growing role in the housing market. The investor restrictions ultimately became one of the most visible components of the legislation and a major reason the bill attracted widespread public support.

However, critics warned that the original Senate language could unintentionally reduce rental housing construction and discourage investment in build-to-rent communities, a rapidly growing segment of the housing market. Industry groups argued that restricting capital too aggressively could worsen housing shortages rather than solve them.

After months of negotiations, congressional leaders reached a compromise that softened some of the most controversial investor restrictions while still preserving the overall goal of limiting large-scale corporate ownership of existing single-family homes.

Major Reforms Aimed at Increasing Housing Supply

While investor restrictions have generated the most headlines, much of the legislation focuses on increasing housing production.

The package includes numerous provisions designed to make it easier and less expensive to build homes throughout the country.

Key reforms include:

• Streamlining federal environmental reviews.
• Reducing regulatory barriers for builders.
• Expanding manufactured housing opportunities.
• Modernizing federal housing programs.
• Encouraging state and local zoning reform.
• Providing incentives for communities that approve additional housing development.
• Expanding financing options for affordable housing projects.

Housing economists have long argued that increasing supply is one of the most effective ways to address affordability problems over the long term.

Many industry groups view these supply-side provisions as the most impactful parts of the legislation because they address some of the structural obstacles that have limited homebuilding for years.

Why South Carolina REALTORS® Are Watching Closely

Few states may feel the effects of this legislation more than South Carolina.

The state continues to rank among the nation's fastest-growing housing markets as new residents relocate from New York, New Jersey, Massachusetts, Florida, California, and other higher-cost states.

That growth has created tremendous opportunities for builders, developers, and real estate professionals, but it has also intensified affordability pressures in many communities.

If enacted, the legislation could influence several major trends already unfolding throughout South Carolina:

Investor Activity: Markets that have attracted institutional investors could see reduced competition from large corporate buyers.

Housing Supply: Builders may benefit from streamlined regulations and housing incentives designed to encourage new development.

Affordability: Additional housing production and reduced investor competition could improve opportunities for first-time homebuyers.

Manufactured Housing: Communities looking for lower-cost housing solutions may benefit from regulatory changes aimed at expanding manufactured housing options.

Development Approvals: Local governments could face increasing pressure to modernize zoning policies and encourage additional housing construction.

Congress Appears Close to the Finish Line

The legislation has already cleared major hurdles.

The Senate approved the housing package by a decisive 89-10 vote, while the House passed its version with overwhelming bipartisan support. Following months of negotiations between the two chambers, congressional leaders announced a final compromise agreement in mid-June.

According to congressional leaders, the final package is expected to receive final votes before heading to President Donald Trump for signature. The administration has strongly supported the bill's efforts to promote homeownership and reduce institutional investor participation in the housing market.

A Defining Housing Policy Moment

Whether viewed as a housing affordability bill, a housing supply bill, or an investor reform bill, the 21st Century ROAD to Housing Act represents one of the most ambitious federal housing efforts in decades.

For REALTORS®, builders, investors, and homebuyers throughout South Carolina, the legislation could shape market conditions for years to come.

As Congress moves toward final approval, industry professionals are increasingly preparing for a housing landscape where increasing supply, expanding homeownership opportunities, and reducing institutional investor influence become central goals of federal housing policy.