For the first time in more than three decades, the United States has enacted comprehensive federal housing legislation designed to address one of our nation’s greatest challenges: housing affordability.
The 21st Century ROAD to Housing Act is the most significant housing legislation since the Cranston-Gonzalez National Affordable Housing Act was signed into law in 1990. More importantly, it represents one of the largest bipartisan victories for housing in a generation. With overwhelming support from both parties, Congress recognized that increasing the nation’s housing supply is one of the most effective ways to improve affordability for homebuyers and renters alike.
For builders in the Sioux Empire, this legislation is significant because it addresses many of the barriers that have made housing more difficult and more expensive to build. While no single piece of legislation can solve today’s affordability challenges, the ROAD to Housing Act provides meaningful tools that will help communities increase housing opportunities while reducing unnecessary regulatory obstacles.
The legislation contains more than 50 housing-related provisions focused on expanding housing supply, improving financing, encouraging local zoning and land-use reforms, supporting community development, and modernizing housing policies. Several of the measures were priorities for the Home Builders Association of the Sioux Empire and the National Association of Home Builders (NAHB), including increasing and indexing multifamily loan limits to encourage apartment construction, streamlining regulatory processes, strengthening community banks that finance residential development, and encouraging communities to adopt policies that make it easier to build attainable housing.
Another important victory was the removal of a provision that would have required large institutional investors to sell newly built single-family rental homes after seven years. We opposed that proposal because it would have discouraged investment in new housing and reduced overall housing production. Its removal ensures builders can continue developing a variety of housing options to meet the needs of growing communities.
While many of the provisions work behind the scenes, the long-term goal is simple: build more homes. Increasing the supply of housing helps create more choices for buyers, improves affordability, and allows communities like Sioux Falls to continue growing responsibly.
That is especially important here in the Sioux Empire. Our region continues to experience strong population growth and economic expansion, creating increased demand for housing across every price point. Builders are working hard to meet that demand, but rising development costs, financing challenges, labor shortages, and regulatory requirements continue to impact the cost of construction. The ROAD to Housing Act provides additional tools and policy reforms that will help communities address these challenges while supporting responsible growth.
The legislation is also a reminder that housing is not a partisan issue. Homeownership remains the cornerstone of the American Dream, and ensuring families have access to safe, attainable housing benefits businesses, schools, employers, and entire communities. The overwhelming bipartisan support for the ROAD to Housing Act demonstrates a shared commitment to addressing the nation’s housing shortage and creating opportunities for future generations.
For HBASE, the passage of the ROAD to Housing Act is more than just a legislative victory, it is a milestone for the building industry. It demonstrates that when housing professionals, community leaders, and policymakers work together, meaningful change is possible.
As our community continues to grow, HBASE remains committed to advocating for policies that expand housing opportunities, reduce unnecessary barriers to construction, and protect the dream of homeownership. The ROAD to Housing Act is an important step in that journey and a historic win for builders, homebuyers, and communities across South Dakota and the nation.
Jordan Hefner
NAHB Area 10 Representative
