Government pause in the U.S. real‑estate market
Donald Trump unexpectedly refused to sign the bipartisan housing bill "ROAD to Housing Act", which aimed to ease the housing affordability problem in the American real‑estate market.
Less than two hours before the scheduled signing ceremony, the U.S. President announced on Truth Social that first and foremost the "Save America Act" must be passed.
This bill would require showing a photo ID and proof of U.S. citizenship to vote.
According to Bloomberg, House Speaker Mike Johnson said Trump will sign the housing bill before the deadline in the coming days.
Nevertheless, the unprecedented clash exposed tensions between the White House and Republican Party members vying to maintain a majority in Congress.
"A veto would be very detrimental to the Republican Party," said Nathan Dean, Bloomberg Intelligence analyst.
"Republicans in Congress really need a win on housing affordability; a veto would be a disaster for them," he added.
The "ROAD to Housing Act" would, among other things, limit the participation of large institutional investors in the single‑family home segment and remove barriers to increase housing supply.
High living costs, including rapidly rising fuel and housing prices, are expected to remain key issues before the midterm elections, which will determine the balance of power in Congress.
"We drafted this bill, which benefits all families, whether they are Republicans or Democrats. Now Donald Trump is acting like a spoiled child", said Democratic Senator and co‑author of the bill, Elizabeth Warren.
Source: Truth Social.
Investors ignored Trump’s threats, as shown by the largest gain in almost a year for the S&P Composite 1500 Homebuilding index.
Source: Truth Social.
Read also: Brutal real‑estate data. Home sales suddenly fell by almost 20%
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Experts comment. "Housing has become too expensive"
The Redfin team, commenting on the legislative changes, emphasized the importance of introducing reforms in the U.S. real‑estate market.
"For over a decade, housing affordability was a low‑priority issue for Congress. The belief prevailed that housing was a local matter best left to city councils and mayors. Today, however, housing has become a nationwide crisis", the report said.
"From California to Wisconsin to Florida and New York – housing has become too expensive, for working families to afford", it added.
The report noted that the proposed solutions could bring real benefits without high costs.
"The biggest achievement of the ROAD to Housing Act is that it proves we can improve people’s situations without incurring huge costs. We just need to follow logic and listen to experts who have long promoted solutions such as zoning reform and streamlining permitting procedures," the report reads.
It also noted that despite potential reforms, significant structural barriers remain.
"The bill will not be a cure‑all. Housing affordability still faces many challenges, such as labor shortages in construction, rising insurance costs, or high land prices, but the bill shows we can make progress and improve Americans’ situation," the summary concluded.
Read also: Real‑estate market slump. Home seekers "should know this" - experts say
See also: Real estate no longer falling. 40,000 sales contracts were canceled this month, homes linger on the market for 60 days
Sources: Bloomberg, Redfin.
