On the Horizon

The 21st Century ROAD to Housing Act

The 21st Century ROAD to Housing Act, signed into law in July 2026, represents a significant federal effort to increase the nation’s housing supply by reducing barriers to development and giving communities new tools to address local housing needs.


For local governments, one of the biggest takeaways is: start preparing now.

The law encourages communities to examine zoning, permitting and development regulations that may make housing more difficult or expensive to build. It also supports tools such as pre-approved housing designs, manufactured and modular housing, streamlined environmental reviews, home repair programs, and greater flexibility within existing federal housing programs.


Of particular importance to rural communities, the law creates opportunities for regional planning agencies to assist local governments with housing plans, zoning reform, regulatory improvements and other efforts to increase housing supply. This could provide much-needed capacity for smaller communities that may not have the staff or resources to undertake major planning and ordinance updates on their own.



As federal agencies begin implementing the law, planners and local officials should watch for proposed rules, guidance and future funding opportunities—and participate in the federal comment process when possible.


Communities can begin positioning themselves now by identifying local housing needs, reviewing zoning ordinances and permitting processes, and determining what types of housing they want to encourage.


The funding may be on the horizon, but the planning can begin today.

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