Housing Issues in the 118th Congress:
Housing affordability is a perennial policy issue, but it has become particularly salient in recent years in light of notable increases in house prices and rents, rising mortgage interest rates, and housing supply constraints in many housing markets. Although housing markets are local, and housing market conditions vary across the country, concerns about housing affordability have been widespread.
Through hearings and proposed legislation, the 118th Congress has been considering the causes of, and potential solutions to, housing affordability issues. Bills to address housing affordability have included certain housing-related tax proposals and proposed modifications to existing housing assistance programs, among other things. In addition to considering housing affordability issues broadly, Congress has also taken an interest in the affordability of housing for specific populations or in specific areas. For example, there have been proposals in the 118th Congress related to rural housing programs specifically, and Congress has expressed ongoing concerns about housing issues on and around military bases.
In addition to considering new legislative proposals, the 118th Congress may also monitor the status of implementation of funding that was provided for certain housing-related programs in previous Congresses, including emergency supplemental funding provided for housing programs in response to the COVID-19 pandemic, certain housing-related funding that was included in the Inflation Reduction Act in the 117th Congress, and funding for new initiatives provided through regular annual appropriations, such as a new competitive grant program for communities addressing regulatory barriers to housing.
Other issues that have been of ongoing interest to Congress include concerns related to the quality of the housing stock in general, and federally-assisted housing in particular; disaster response and recovery as it relates to housing; and fair housing issues, among others. In addition, the 118th Congress has been conducting oversight of executive branch actions, including certain mortgage pricing changes implemented by the government-sponsored enterprises Fannie Mae and Freddie Mac at the direction of their regulator, the Federal Housing Finance Agency.
Housing issues of interest to the 118th Congress will likely continue to evolve as the Congress progresses; this report will be periodically updated to reflect that evolution.
While housing in the United States is primarily a private market enterprise, regulated at the state and local levels, federal policymakers play an important role in regulating housing finance, providing affordable housing resources to state and local governments or other public or private entities, and enforcing fair housing laws, among other functions. Congress establishes laws governing U.S. housing policy, funds housing policies and programs via the annual appropriations process and the federal tax code, and oversees policy and program implementation by various federal agencies.
The House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee, in particular, play prominent roles in many of these functions as committees of jurisdiction over most federal housing policies and programs. Federal agencies involved in housing policy and programs include the Department of Housing and Urban Development (HUD), the Federal Housing Finance Agency (FHFA), the Department of the Treasury (Treasury), the U.S. Department of Agriculture (USDA), and others.
Recent Congresses have considered a range of housing policy issues that continue to be of interest to the 118th Congress, including, among other things, options to address growing concerns about housing supply and affordability challenges, housing responses to natural disasters, and issues related to the quality of federally assisted housing and the housing stock more generally. Other issues of interest to the 118th Congress include the status or implementation of certain housing-related funding provided in previous Congresses and oversight of executive branch actions related to housing.
This report begins with an overview of certain housing market indicators to provide context for the policy issues discussed in the remainder of the report. It then provides a high-level overview of housing issues during the 118th Congress and, where applicable, refers to more in-depth CRS reports on the issues discussed. Appendix A lists housing-related legislation that has received committee or floor consideration in the 118th Congress and Appendix B lists this Congress’s housing-related hearings. (The information in both appendixes is current as of June 30, 2023.) This report will be updated periodically.