Marcus & Millichap: ROAD to Housing Act Passage is “Step in the Right Direction”

Congress’ passage of the 21st Century ROAD to Housing Act, which became law this past weekend without President Trump’s signature, marks “one of the most significant federal housing reform efforts in decades, reflecting a bipartisan shift toward addressing the nation’s affordability problem,” Marcus & Millichap says in a special report. “Construction and homeownership constraints will likely persist, but the bill is a step in the right direction.”

That being said, president and CEO Hessam Nadji told CNBC recently that the bill would have limited impact on housing affordability, given that the institutional owners targeted in the bill comprise just 3% of the overall market. “No single provision appears transformative,” the report states.

However, the report says combined policy changes could modestly support for-sale and multifamily production by targeting four key constraints:

• Regulatory reform: Streamlining federal reviews, funding local planning administration, and tying grants to housing production gains.
• Financing access: Improving financing access for affordable housing, multifamily projects, and community development.
• Program modernization: Updating federal housing programs to improve execution, preserve affordable units, and support new supply.
• Factory-built housing: Supporting manufactured, modular, and offsite housing as lower-cost alternatives to traditional construction.