Bipartisan Legislation Seeks to Restore Housing Affordability for First-Time Homebuyers

Bipartisan Lawmakers Target Housing Affordability Crisis Through Federal Program Reform

A bipartisan pair of lawmakers has introduced legislation aimed at making housing more affordable for middle and lower-income Americans, addressing one of the nation’s most persistent economic challenges.

House Main Street Caucus Chairman Mike Flood (R-Neb.) has partnered with Rep. Emanuel Cleaver (D-Mo.) to modernize the federal HOME Investments Partnership Program, which provides grants to state and local jurisdictions for affordable housing initiatives. According to Flood, the program has remained largely unchanged since the early 1990s.

“Traditionally, the program that we’re remodeling has favored multifamily. But an apartment is not the American Dream. The American Dream is a single-family home,” Flood explained. The proposed reforms would shift the program’s focus to support more single-family home development.

The legislation comes at a critical time for the housing market. The National Association of Realtors recently reported that the median age for first-time home buyers has reached a record high of 40 years old. First-time buyers now represent just 21% of home sales this year, the lowest proportion since 1981.

The lawmakers’ proposal addresses several specific barriers to affordable housing. One key element targets infrastructure costs that developers currently pass on to homebuyers. Flood explained how this affects prices in his home state of Nebraska.

“The cost of a lot, before you even buy the ground, there’s already $25,000 in there,” he said. “If the city of Columbus, Nebraska, gets $2.5 million from the Home Partnership program, the city can go in and expand stormwater and sewer and maybe even pavement and streets.”

This infrastructure investment could significantly reduce housing costs. “Instead of being a $50,000 lot, it’s a $20,000 lot. Instead of being a $300,000 home, you know, it’s a $270,000 home,” Flood said. The savings come from shifting infrastructure development costs from private developers to local governments, which can complete these projects more efficiently using federal grant money.

Another significant change would expand eligibility for the program by adjusting income qualification standards. “We’re taking the average median income standard from 80% of the county average to 100%, to make communities that have all the nice amenities able to participate in the program,” Flood said.

Cleaver emphasized the importance of these reforms in a statement last month. “By revamping and revitalizing the HOME Program—one of our greatest tools to expand the supply of affordable housing for working-class families—we can ensure that affordable housing and the American Dream of homeownership are once again attainable from the heartland to the coasts.”

The housing affordability crisis has deepened in recent years due to a combination of factors, including rising construction costs, high inflation, increased mortgage rates, and inadequate housing supply in many markets. These issues have made homeownership increasingly out of reach for younger generations and middle-income families.

Housing experts point to regulatory barriers, supply chain issues, and workforce shortages in the construction industry as additional factors contributing to elevated housing costs. The shortage of affordable housing has ripple effects throughout the economy, affecting labor mobility, retirement security, and wealth-building opportunities for millions of Americans.

Flood also acknowledged President Donald Trump’s influence on bringing housing affordability to the forefront of policy discussions. “President Trump accelerated our success and our progress on this issue when he came out very forcefully earlier in the summer and said that housing affordability was one of the top goals of his administration,” he noted.

The legislation represents a rare moment of bipartisan cooperation on a pressing economic issue affecting constituents across the political spectrum. If successful, the reforms could help reverse troubling trends in homeownership rates and provide relief to Americans struggling with housing costs nationwide.