Congress recently passed what many are calling the most significant federal housing legislation in decades. The bipartisan 21st Century ROAD to Housing Act cleared both the House and Senate with overwhelming support, but it has not become law yet.
As of the time of writing, President Trump has not signed the legislation. He has indicated that he is delaying action while seeking movement from Congress on separate election-related legislation. That means the timing—and even the final outcome—remains uncertain.
So what exactly is in the bill, and more importantly...
Would it actually make housing more affordable here in Placer County?
The Goal: Build More Homes
At its core, the legislation has one primary objective:
Increase America's housing supply.
Most economists agree that one of the biggest long-term reasons housing has become more expensive is a basic imbalance between supply and demand.
For years, the United States has not built enough homes to keep pace with population growth and the formation of new households. When demand continues to outpace supply, prices naturally rise.
The proposed legislation attempts to help by:
- Reducing certain federal regulations that add cost and delays to housing projects.
- Modernizing federal housing programs.
- Encouraging communities to remove barriers to new construction.
- Making it easier for builders to finance housing developments.
If the bill ultimately becomes law and these changes are implemented successfully, they could gradually increase housing supply over the coming years.
The Biggest Challenges in California Are Still Local
While federal policy can certainly play a role, it's important to keep things in perspective—especially here in California.
The majority of the costs and delays involved in building homes don't come from Washington.
They come from state and local government.
Some of the biggest barriers include:
- Local zoning restrictions
- Lengthy permitting and approval processes
- California environmental regulations
- Development impact fees
- Infrastructure requirements
- Utility connection costs
- Local design review requirements
These requirements can add hundreds of thousands of dollars to the cost of building a home before construction even begins.
Even if federal regulations become more streamlined, California builders will still need to navigate many of these state and local requirements.
In my view, meaningful reforms at the state and local level would likely have a much greater impact on housing affordability here than federal changes alone.
What Could This Mean for Placer County?
Despite those limitations, there are still reasons to be optimistic.
Placer County continues to be one of California's fastest-growing counties, with communities like Roseville, Rocklin, and Lincoln continuing to see new development.
If federal regulations become somewhat easier to navigate and builders gain access to more efficient financing, some housing projects could move through the process a little faster.
That doesn't mean homes will suddenly become inexpensive.
However, over time, additional housing supply could lead to:
- More homes for buyers to choose from.
- Less intense competition on well-priced listings.
- Slower home price appreciation.
- A healthier and more balanced housing market.
Those are positive outcomes for both buyers and sellers.
Will This Lower Home Prices?
Probably not.
At least not anytime soon.
Housing shortages developed over many years, and they won't be solved overnight.
Even if this legislation becomes law, new communities still take years to plan, approve, and build.
It's also important to remember that this bill is not expected to lower mortgage interest rates. Mortgage rates are driven primarily by inflation, Federal Reserve policy, and the bond market—not by housing legislation.
My Take
I think it's encouraging to see both political parties acknowledge that America needs to build more housing.
That's an important first step.
At the same time, I don't believe this legislation alone will solve California's affordability challenges.
Here in Placer County, the biggest obstacles to increasing housing supply remain state and local regulations, permitting timelines, development fees, and infrastructure requirements.
If meaningful reforms eventually occur at every level of government, we could see real improvements over the long term.
Until then, I expect our local housing market to continue looking much like it does today:
- Inventory remains relatively limited.
- Well-priced homes continue to attract strong buyer interest.
- Buyers still benefit from experienced guidance in a competitive market.
- Sellers who price their homes appropriately remain in a strong position.
Whether you're buying your first home, moving up, downsizing, or simply keeping an eye on the market, understanding how legislation like this could shape the future is important.
If you'd like to discuss what today's market means for your specific situation, I'd be happy to help.
Patrick Hake
Broker Associate
eXp Realty of California
License #01349088
Call or text: (916) 316-5626
www.OwnPlacer.com/patrick-hake.php
Weekend Events Around Placer County (June 25–28)
The weather is looking just about perfect this weekend, with unusually cool temperatures expected across Placer County. Those conditions could make for one of the fastest Western States 100 races in history, with many watching to see if course records fall. Here are a few great events happening around the area.
Western States Endurance Run
Palisades at Olympic Valley → Placer High School | Auburn
Saturday, June 27 – Sunday, June 28
Race Start: 5:00 AM Saturday | Front Runners Finish: Approximately 7:00–8:00 PM Saturday | Runners continue finishing throughout the night and into Sunday.
One of the world's most prestigious ultramarathons returns to Placer County as elite runners tackle 100 rugged miles from Olympic Valley to Auburn. With cool temperatures in the forecast, many are wondering if this year's race could produce new course records.
Placer County Fair
700 Event Center Drive | Roseville
Thursday, June 25 – Sunday, June 28
Thursday & Friday: 5:00 PM – 11:00 PM | Saturday & Sunday: 12:00 PM – 11:00 PM
The Placer County Fair returns with carnival rides, live entertainment, agricultural exhibits, delicious fair food, and family-friendly fun. It's one of the county's favorite annual traditions and a great way to spend a summer evening.
X Games Sacramento
Cal Expo | Sacramento
Friday, June 26 – Sunday, June 28
The X Games return to the Sacramento region for three days of world-class BMX, Moto X, and skateboarding competitions featuring many of the best action sports athletes in the world.
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