Why It Matters

An historic housing shortage of four to seven million homes has created an affordability crisis now at its worst level in 40 years, affecting both renters and prospective homeowners across income levels.

What’s at stake: The Senate’s ROAD to Housing Act passed committee 24-0, signaling unprecedented consensus that federal zoning reform is now politically viable. House members must now align around similar principles or risk losing momentum.

Federal policy changes could unlock significant construction capacity. Current regulatory barriers—restrictive zoning, lengthy permitting, outdated building codes—inflate costs and slow development. The Manufactured Housing Institute and First Step Homes are lobbying specifically for manufactured and modular housing reforms that could expand affordable options.

The proposed legislation includes federal incentives tied to housing outcomes, creating pressure on cities and states to adopt growth-friendly policies or lose funding—a significant shift in federal leverage over local land-use decisions. Streamlined development processes and innovative construction methods like modular homes could reduce costs by up to 20 percent.

Broader Context

The House Financial Services Committee hearing arrives amid unprecedented federal, state, and bipartisan momentum around housing supply reform. State legislatures are leading the charge—Washington enacted groundbreaking reforms on parking mandates and transit-oriented development in 2025, while Texas and Maine capped minimum lot sizes at the state level.

Supply-side solutions are gaining credibility as policy tools. Modular homebuilders like Fading West are demonstrating 20% cost savings and seven-day production cycles, with New York Governor Kathy Hochul announcing plans to feature modular homes as key to increasing affordable housing statewide.

However, the industry faces significant headwinds. The construction sector faces a record 32% labor shortage in 2025, with 92 percent of firms reporting difficulty finding workers.

The Agenda

The December 3 hearing will feature witnesses from a diverse coalition of housing advocates, industry representatives, and policy experts focused on removing regulatory barriers to residential construction.

Key witnesses include:

  • National Association of Home Builders (NAHB): Representatives from the nation’s largest homebuilding trade group
  • Mercatus Center at George Mason University: Policy experts documenting how restrictive land-use policies constrain construction
  • Manufactured and Modular Housing Industry: Executives from companies like Cavco Industries and officials from the Manufactured Housing Institute
  • Niskanen Center: Public policy experts advocating for regulatory barrier reduction
  • Labor Union Officials: Including the International Union of Bricklayers, supporting modular construction methods

Between The Lines

Representative Mike Flood (R-NE) has emerged as a primary driver of bipartisan housing reform. His major bills include the Housing Supply Frameworks Act, co-sponsored with Rep. Brittany Pettersen (D-CO), directing HUD to create best-practice frameworks for zoning reform. Flood also co-authored the HOME Reform Act of 2025 with Rep. Emanuel Cleaver (D-MO)—the first significant modernization of the HOME Investment Partnerships Program in over 30 years.

Rep. Cleaver’s SPUR Housing Act, introduced with Senator Dick Durbin, establishes funding to help smaller developers overcome financing barriers. Rep. Sam Liccardo (D-CA), drawing on mayoral experience in Silicon Valley, has championed streamlined environmental review legislation.

Competitive Landscape

A diverse coalition is actively lobbying Washington to shape housing supply legislation. The Niskanen Center has advanced deregulation advocacy, with filings showing direct support for the Housing Supply Frameworks Act and the Identifying Regulatory Barriers to Housing Act.

The Manufactured Housing Institute has consistently lobbied for HUD Code modernization, while First Step Homes has focused on the National Housing Act and offsite construction policy. The International Union of Bricklayers has backed the ROAD to Housing Act, indicating labor sees opportunity in both traditional and innovative building methods.

The Bottom Line

Bipartisan momentum is setting the stage for significant housing policy action. The December 3 hearing reflects broad agreement that regulatory barriers are constraining housing supply and fueling affordability crises.

The Senate’s historic 24-0 vote on the ROAD to Housing Act, combined with state-level reforms and House members introducing multiple complementary bills, signals genuine cross-party consensus. From labor unions to industry groups, stakeholders are aligned on deregulation.

What remains unresolved: whether outcome-based federal incentives will compel local governments to adopt reforms quickly enough to address a 4.7 million-unit housing deficit and record affordability crisis.

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