Homes are in short supply in the U.S. How a new law could change the market

A new law adopted on July 11 marks the most significant effort in decades to boost the US housing supply. 

The 21st Century Road to Housing Act, which passed both chambers of Congress by a huge margin, is designed to bring relief to Americans struggling with lofty prices and mortgage rates. Its impact might not be felt for years, however, given the often long timelines on construction projects and state and local statutes that limit development.

The fate of the legislation had been up in the air after President Donald Trump announced that he wouldn’t sign the measure. Trump ultimately opted not to use his veto power to try to block the bill, clearing the way for it to become law.

Here’s what to know about the new law and how it could change the housing market. 

What’s included in the housing bill?

The bipartisan legislation aims to alleviate a housing shortage that has contributed to voters’ frustrations over affordability. The law includes new ...