Legislation aimed at the housing market could have mixed success at increasing affordability. A comparison of recent US legislation with the wider research literature provides some insights on what impact regulatory changes can have on residential markets.
The 21st Century ROAD to Housing Act, passed in July 2026 by the US Congress, is more likely to slow housing price and rent growth than to produce an immediate broad price decline, according to a review of relevant research literature. The biggest effects should come with a lag, and they will be uneven across metros and income segments.
The core finding from the housing economics literature is that when policy reduces the “regulatory tax” on development, the housing supply curve becomes more elastic, so new construction responds more to demand shocks and equilibrium prices rise less over time. That basic result is consistent across research on supply constraints and regulation.
The implication is straightf
