Legislation proposed by Senators Kennedy and Warren targets the construction of economical dwelling spaces for the housing market
The Build Now Act, a new congressional bill, has taken a significant step forward in its journey to become law. This bipartisan provision, included in the larger Renewing Opportunity in the American Dream (ROAD) to Housing Act of 2025, aims to address the housing affordability crisis in the U.S. by incentivizing local communities to increase housing supply.
Senators Elizabeth Warren (D-MA) and John Kennedy (R-LA) partnered to create the legislation, which has been unanimously approved by a Senate committee. The bill is expected to be brought to the floor for a vote by the majority leader as soon as possible, according to Senator Kennedy.
The Build Now Act links a community's access to Community Development Block Grant (CDBG) funding to their housing construction performance. Communities that speed up homebuilding receive increased CDBG funding, while those that lag may see modest reductions. This approach aims to discourage regulatory roadblocks and promote practical measures to boost housing availability in high-demand areas, thus helping reduce soaring home prices and improve housing affordability.
HUD would then be required to proportionally reallocate the grant funding to cities that exceed the median. The bill requires the Department of Housing and Urban Development (HUD) to remove 10 percent of CDBG funding from cities that fail to improve their rate of homebuilding above the national median.
Senator Kennedy believes the bill will be somewhat controversial in some cities but ultimately expects it to become law. The bill's passage could potentially help alleviate the housing affordability crisis in various cities across the country.
Klurfield, a housing analyst from the Bipartisan Policy Center, considers the bill a good first step toward solving the affordability issue, but notes that it will also have to be addressed locally. The housing crisis has been exacerbated by years of housing undersupply, with prices climbing to record highs while sales continue to hover near 30-year lows.
The National Association of Realtors reported that the median home price climbed to $435,300 in June, the highest ever recorded for the month. This bill, along with other measures included in the ROAD to Housing Act, such as cutting red tape, streamlining environmental reviews, increasing affordable housing financing, and funding local innovation to stimulate housing development, aims to make homeownership attainable again for average American families.
Senator Warren feels good about the bill due to its bipartisan unanimous support this week. She believes that changes are necessary to address the housing affordability crisis, as many young adults can't afford to buy homes and many people are stuck in tiny apartments or have no housing at all. This bill is an encouraging step towards addressing the housing affordability issue, as it gives the federal government the avenue to influence housing construction at the local level.
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- The Build Now Act, aimed at incentivizing local communities to increase housing supply and reduce soaring home prices, includes measures such as tying Community Development Block Grant funding to a community's housing construction performance, removal of funding from cities that fail to improve their homebuilding rate above the national median, and other measures targeted at stimulating housing development, all in an effort to make homeownership attainable again for average American families.
- The bill's passage, along with other provisions in the ROAD to Housing Act like cutting red tape, streamlining environmental reviews, increasing affordable housing financing, and funding local innovation, could potentially impact the finance and real-estate industry by increasing housing availability, thereby influencing the housing market, mortgage lending, and investments in these sectors.
