More Affordable Homes Could Be on the Way—Thanks to This Bill

If you’re trying to buy a home or find a reasonably priced rental, you already know the numbers might not add up. Prices are high, inventory is tight, and mortgage rates aren’t doing anyone any favors.

But a new bipartisan bill just reintroduced in Congress might offer some long-overdue relief—and it’s one to keep on your radar.

Earlier this month, lawmakers in the House of Representatives brought back the Affordable Housing Credit Improvement Act (AHCIA)—a policy designed to increase the supply of affordable housing across the country. And this time, the bill is attracting serious attention, with 118 co-sponsors evenly split between Republicans and Democrats.

So, what is this bill—and more importantly, how could it help you?

The basics: What this bill actually does

At its core, AHCIA is all about expanding the Low-Income Housing Tax Credit (LIHTC), which is the federal government’s most successful and widely used tool for building affordable housing. It works by giving developers tax incentives to build or preserve housing that’s affordable to people with low or moderate incomes.

This bill proposes a few big updates:

• Increase the number of housing credits allocated to each state by 50% for the next two years
• Make a past 12.5% temporary increase permanent
• Reduce the amount of private bond financing needed to unlock tax credits, which means more projects will qualify and fewer will be blocked by red tape

If passed, these changes could help finance the construction of hundreds of thousands of new affordable rental unitsover the next decade—making a real dent in today’s supply shortage.

Why this matters to home buyers and renters

You might not apply for this tax credit yourself, but you’ll absolutely feel its impact in the market.

Here’s how:

• More affordable homes and rentals: When developers can access these tax credits, they’re more likely to build homes that people can actually afford—not just luxury condos or high-rent apartments.
• Less competition for every listing: More housing on the market = less bidding war madness and fewer months-long rental hunts.
• Stronger communities: Many of these projects are aimed at supporting teachers, nurses, young families, and essential workers—people priced out of the neighborhoods they serve.

And for anyone thinking about buying their first home, more affordable rental housing also creates breathing room. It can help you save up, reduce housing cost burdens, and stay stable while you plan your next step.

Wait—Something bipartisan in Congress?

Yep, believe it or not.

Housing affordability is one of the few issues bringing lawmakers from both parties together. That’s partly what gives this bill momentum: it’s backed by groups ranging from housing nonprofits to industry associations and is structured in a way that appeals to both sides of the aisle.

Still, like all legislation, it has to move through the House and Senate before it becomes law. That means your voice matters, especially if you’re living through the realities this bill is trying to fix.

What you can do now

• Stay informed: The more you understand about housing policy, the better decisions you can make when it comes to renting or buying.
• Speak up: If this kind of legislation could help you, let your representatives know. They hear more from lobbyists than real people.
• Plan for long-term affordability: Even if housing relief is months or years away, start talking to lenders, real estate agents, and housing counselors about what’s realistic for you right now.

The bottom line

The Affordable Housing Credit Improvement Act isn’t a silver bullet—but it’s one of the most meaningful efforts in years to expand affordable housing and ease pressure on everyday buyers and renters.

If passed, it could bring more homes to market, stabilize prices, and make it easier to find a place that fits your budget and your life.

In a market this tough, every extra option matters—and this bill could help create a lot more of them.