Congress’s New Plan to Address Housing Affordability? More Apartments

Key Takeaways

• The Housing for the 21st Century bill includes provisions that could free up more lending for low- and middle-income apartment buildings.
• The House of Representatives and Senate still need to merge their housing legislation before it can be sent to the president.

Any recent homebuyer knows that finding an affordable place to live has become increasingly difficult. Congress believes it has a solution: more apartments.

The House of Representatives passed legislation last month that would change how apartment building construction is financed, allowing banks to lend more money for multifamily projects. The result could be more apartments, which could drive down rent.

Why This Matters for You

Housing affordability affects everything from household budgets to inflation data. If Congress makes it easier to finance apartment construction, a larger rental supply could ease rent pressures, influence home prices, and ultimately affect consumer spending, real estate values, and broader economic growth.

“I think you’re going to see a lot more units come online, and that will have a dramatic impact, we believe, on the abundance of affordable housing,” said Owen Caine, assistant vice president for federal legislative affairs at the National Apartment Association.

More Apartments Built Amid Affordable Housing Crunch

High prices have sidelined buyers, keeping home sales at decades-low levels. Buyers have struggled with home prices that have surged since the pandemic, while mortgage rates have hovered over 6% for much of the past four years.

Limited supply has also kept prices high, giving buyers fewer options and letting sellers hold firm. With high prices keeping potential buyers on the sidelines, many have continued renting.

“Apartments or multifamily homes make up a sizable portion of affordable housing in this country,” Caine said. “Rentals are always going to be more on the affordable side.”

Elevated home prices have driven a surge in apartment construction over the past few years, with RentCafe finding that builders added more than 500,000 rental units in both 2024 and 2025, hitting record levels. The study showed that affordable housing construction grew by 73% from 2020 to 2024.

Legislation Expands Apartment Building, Which Could Also Help Make Housing Cheaper

While the Housing for the 21st Century bill passed the House of Representatives by a 309-9 vote, it will need to be reconciled with the ROAD to Housing Act, which passed the Senate in October.

Related Education

How Credit Affects Renting an Apartment

Low-Income Housing Tax Credit (LIHTC): What It Is, How It Works

More apartment inventory could help renters. A recent report from Realtor.com showed that rental vacancies were 7.6% in 2025, helping tip the market in favor of renters on prices and unit availability. But it could also help homebuyers, Caine said, noting that more apartments would also free up housing inventory elsewhere.

“The more supply you have in any general section of housing creates supply everywhere,” Caine said. “If you’re able to house more people in multifamily housing, that frees up the ability for other people who may have the capital to buy single-family homes.”

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