Housing affordability emerged as a defining flashpoint during the November 3 midterm elections, casting a long shadow over the political landscape and establishing itself as an urgent priority for the upcoming Democratic-controlled Congress. According to recent reports, Democrats successfully clinched majorities in both the House and the Senate while also managing to flip several key gubernatorial seats across the country, fundamentally reshaping the balance of power in Washington and state capitals alike.
This electoral shift arrives at a time when the pressure to address escalating housing costs has reached a fever pitch. Industry experts and legislative advocates alike point out that the fundamental challenge of housing affordability is not going away, regardless of which party holds the gavel. Greg Brown, the senior vice president of government affairs for the National Apartment Association, noted that housing is an issue that both political sides care deeply about, pointing to the reality that the crisis continues to impact communities in every single congressional district nationwide.
This shared sense of urgency was clearly demonstrated earlier this year when Democrats and Republicans managed to bridge political divides to pass what has been widely recognized as the most consequential federal housing legislation in decades. According to Brown, lawmakers from both sides of the aisle have already engaged in active conversations about what policy steps should come next. However, he acknowledges that it will be fascinating to observe how the legislative process ultimately unfolds given the newly established division of congressional control and the changing dynamics on Capitol Hill.
The successful bipartisan effort to pass the 21st Century ROAD to Housing Act serves as a prime model for how lawmakers might continue to approach housing legislation moving forward. Andy Winkler, the managing director for housing and infrastructure at the Bipartisan Policy Center, emphasized that the ROAD Act’s passage was largely fueled by a collective recognition that Congress had remained largely inactive on housing issues for years while housing costs skyrocketed to staggering heights. This created an undeniable political pressure for federal lawmakers to respond with tangible solutions.
Looking ahead, Winkler pointed out that the transition period will inevitably require time as newly elected and returning members of Congress staff up and bring themselves fully up to speed on complex policy matters. This dynamic creates a critical window of opportunity for industry stakeholders, advocacy groups, and housing experts to actively engage with members of Congress and their staff, educating them on the realities of the housing market and ensuring that industry priorities remain front and center during policy discussions.
Despite the broad focus on housing, the multifamily and rental housing industry has frequently voiced concerns that national politicians tend to hyper-fixate on homeownership while overlooking the rental market. Bernard Fulton, the senior vice president of legislative and political affairs for the National Multifamily Housing Council, highlighted this persistent complaint, noting that federal policymakers often neglect the specific needs of apartment owners, operators, and renters.
At the same time, Fulton emphasized that while both political parties widely recognize the necessity of further housing action, a shared belief that something must be done does not automatically mean lawmakers possess the correct roadmap for achieving it. In his view, navigating these differing philosophies presents a substantial opportunity for the multifamily industry to help shape effective policy solutions.
New Congress brings changes
The results of recent national elections have instilled a renewed sense of urgency among elected officials to cut legislative deals, according to Fulton’s analysis of the political climate. As the new Congress convenes and lawmakers delve into the nitty-gritty details of governance, Fulton anticipates a flurry of activity, including the introduction of tariff and tax legislation, alongside heightened oversight of financial regulators who wield significant influence over interest rates and borrowing costs.
Fulton also expressed optimism that lawmakers will waste little time once January arrives, predicting the introduction of new housing bills and the potential crafting of a comprehensive "ROAD 2.0" legislative package that could even find its way to the White House desk before the end of 2027.
From an economic perspective, Joel Berner, a senior economist with Realtor.com, noted in emailed comments that Democratic control of both legislative chambers could result in national budget frameworks that robustly protect critical federal programs. These include Community Development Block Grants and the Low-Income Housing Tax Credit, both of which serve as vital pillars for the expansion and preservation of affordable multifamily housing across the nation.
At the same time, Berner pointed to several other critical issues that industry observers and stakeholders will need to monitor closely in the coming months. These include tracking whether areas where Democrats recently gained power choose to pursue rent control measures or expanded tenant protections, observing how shifts in immigration policy might ripple through the construction labor force, and determining whether federal Democrats will push to roll back existing tariffs on essential construction materials.
Major structural changes are also on the horizon for key congressional committees, most notably the House Financial Services Committee, which holds sweeping jurisdiction over the U.S. Department of Housing and Urban Development, the housing programs administered by the U.S. Department of Agriculture, and various financial regulators. Fulton pointed out that this committee will see significant turnover, with several prominent members failing to return alongside entirely new committee leadership taking the reins in the House.
While Republicans have traditionally focused heavily on deregulatory measures and streamlining various HUD programs, Winkler noted that the core priorities of the minority party could easily shift depending on how Congress decides to adjust funding levels and federal appropriations. Winkler expects that the implementation of the ROAD Act will face intense congressional scrutiny, particularly because the majority of the programs and structural changes authorized by the legislation lack dedicated funding and will rely entirely on future appropriations. In a Democrat-controlled House and Senate, the political and financial dynamics surrounding the funding of those specific programs could look markedly different.
More collaboration on housing ahead?
Despite inherent party differences and occasional ideological clashes, housing continues to stand out as a primary arena ripe for bipartisan collaboration in the new era of divided government. Winkler underscored that even with a Democratically controlled Congress, major legislative initiatives will ultimately require the signature of the president to be enacted into law, making housing one of the most promising areas to build upon the legislative progress achieved during the previous session.
Underpinning this potential for collaboration is an increasingly broad consensus among policymakers that the absolute root of the nation’s housing affordability crisis is a severe, systemic lack of housing supply. Fulton noted that policies supporting zoning and land-use reforms designed to boost overall housing production represent a clear area of shared agreement between both political parties. However, he cautioned that disagreements frequently arise when lawmakers debate the specific mechanisms for providing federal support to state and local governments undertaking these local zoning efforts.
In addition to supply-side solutions, Winkler highlighted a strong current of bipartisan agreement regarding the need to modernize and improve access to federal housing financing programs. Many of the existing loan programs and administrative systems have operated without significant technological updates for decades. Upgrading these systems to make them more user-friendly and accessible represents a straightforward matter of good governance that both parties can readily champion.
Similar opportunities exist for modernizing HUD’s Section 8 housing voucher program. Brown noted that there is widespread agreement on the necessity of making the program more efficient, cost-effective, and user-friendly for residents while simultaneously lowering barriers to entry for private-sector owners so that participation in the program expands.
Ultimately, housing touches every congressional district across the United States, meaning that the stability and availability of housing should transcend partisan politics. Brown emphasized that the core mission of industry advocates is to continually remind lawmakers of this reality, steering them toward common-ground policies where they can work together to deliver meaningful, lasting impacts for their constituents and the country as a whole.
