{"id":4663,"date":"2026-07-16T11:06:30","date_gmt":"2026-07-16T11:06:30","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=4663"},"modified":"2026-07-16T11:06:30","modified_gmt":"2026-07-16T11:06:30","slug":"major-federal-housing-legislation-becomes-law-what-will-it-mean-for-the-bay-area","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=4663","title":{"rendered":"Major federal housing legislation becomes law. What will it mean for the Bay Area?"},"content":{"rendered":"

A bipartisan bill supporters call the most important piece of housing legislation by Congress in a generation is now law. But experts say that while it\u2019s a step in the right direction, it\u2019s unlikely to put a major dent in the Bay Area\u2019s crushing rents and home prices anytime soon.<\/p>

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Instead of overhauling the nation\u2019s housing policies, the bill sets in motion dozens of incremental changes, including easing regulations to spur new construction, which economists broadly view as critical to alleviating Bay Area housing costs after decades of sluggish homebuilding.<\/p>\n

\u201cIt\u2019s a lot of small, technical shifts that individually are not headline-grabbing, but collectively could lead to some meaningful change,\u201d said David Garcia, deputy director of policy for the UC Berkeley Terner Center for Housing Innovation.<\/p>\n

While Bay Area congressional lawmakers played a key role in drafting the bill, it contains no provisions specifically tailored to the region. It does, however, condition some federal grants on the progress local communities make in building more housing, and aims to help homeowners take out loans for accessory dwelling units, or ADUs, which have become increasingly popular in the Bay Area.<\/p>\n

It also includes a high-profile measure that restricts large investors from buying single-family homes, though Wall Street does not appear to be targeting large numbers of homes in the Bay Area.<\/p>\n

The 21st Century ROAD to Housing Act became law over the weekend after securing overwhelming support from lawmakers in both parties. It passed despite President Donald Trump\u2019s refusal to sign it unless Senate Republicans first approved a separate voting reform bill. Trump ultimately declined to veto the legislation, allowing it to take effect 10 days after it arrived on his desk.<\/p>\n

Congress\u2019 focus on housing, long a challenge for densely populated coastal regions like the Bay Area, comes as rising rents and real estate prices have become a top concern for voters nationwide as communities struggle to build enough homes to keep up with demand. During the 2024 election, housing became a central campaign issue for the first time in decades.<\/p>\n

Silicon Valley Rep. Sam Liccardo, who introduced several provisions in the bill, including the ADU measure, acknowledged it will likely take years for many of the reforms to have a tangible impact on local housing markets.<\/p>

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Still, he described the legislation as a blueprint for future bills to tackle what he sees as a defining issue facing the Bay Area and, increasingly, the entire country.<\/p>\n

\u201cThis is one of the few areas we have an opportunity for bipartisan progress,\u201d Liccardo said.<\/p>\n

While housing advocates are encouraged to see Congress finally take up housing issues, they say the most consequential land-use decisions are still to come at the local level. That means it\u2019s up to state lawmakers and regulators, who have greater authority to influence local policies, to continue pushing California cities and counties to approve more homes, said Matthew Lewis, communications director for California YIMBY.<\/p>\n

\u201cNo matter what happens, you still need an environment within the state that is friendly to homebuilding,\u201d he said.<\/p>

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