The Senate Banking Committee’s Subcommittee on Housing, Transportation, and Community Development hosted a discussion about potential solutions to the housing affordability crisis during a hearing entitled “Innovation in U.S. Housing: Solutions and Policies for America’s Future” on Oct. 21.
A panel of three experts offered insights to the committee about various options for reducing regulatory cost burdens and addressing rising construction costs with the goal of increasing the supply of affordable and sustainable housing for American families. Among the options discussed were public-private partnerships, modular construction and fortified building.
The panel was comprised of Dr. Lars Powell, executive director at the Center for Insurance and Research, Culverhouse College of Business, University of Alabama; Dennis Shea, executive vice president and chair at the Bipartisan Policy Center; and Mary Tingerthal, founder of Construction Revolution.
A focal point of the discussion was the potential impact of the “ROAD to Housing Act,” which aims to address barriers to adoption of new construction techniques. The bill passed the Senate on Oct. 10 as part of the Fiscal Year 2026 National Defense Authorization Act.
The legislation includes provisions intended to ease regulatory requirements to create cost savings for homebuilders, support efforts to modernize housing programs and support state and local zoning reforms intended to boost housing development.
Shea pointed to the Senate’s unanimous vote to pass the ROAD to Housing Act as a sign that there is plenty of bipartisan agreement about affordable housing. He began by highlighting the bill’s provisions addressing high costs related to regulatory burdens, while noting its incorporation of portions of other legislative pieces and federal housing programs.
“The ROAD to Housing Act includes several provisions aimed at updating and streamlining regulations,” Shea said. “For example, provisions adopted from the bipartisan Choice in Affordable Housing Act would reduce delays and complexity associated with the HUD (Department of Housing and Urban Development) inspection process for the Housing Choice Voucher (HCV) program by removing duplicative requirements for properties that have recently passed inspections under other federal housing programs. It would also allow new landlords to request advance inspections. These changes aim to incentivize greater landlord participation in the HCV program and ultimately expand options for voucher holders – approximately 40 percent of whom are currently unable to find an eligible unit with a landlord willing to participate in the program.”
The legislation also would lower manufactured housing costs and require the creation of a new pilot under HUD’s Family Self-Sufficiency program to automatically enroll new households and remove enrollment barriers, incorporating provisions from the bipartisan Helping More Families Save Act.
Powell addressed the potential impact of a new construction standard intended to make housing more resilient in the face of natural disasters. He described how Alabama’s program to build single-family houses using the Insurance Institute for Business and Home Safety (IBHS) FORTIFIED standard has been effective in reducing insurance costs and mitigating disaster-related damage.
“It is desirable and economically beneficial to have houses at the coast and in less-developed wildlands. We do not propose that people stop building in these areas,” he explained. “Instead, we point out that building there is a choice for which consumers should weigh appropriate costs and benefits. If we build in harm’s way, we must build to stronger standards or be prepared to pay more for insurance.”
When Hurricane Sally struck Alabama’s coast in 2020, houses built to the FORTIFIED standard performed much better than conventional houses in terms of both loss frequency and loss severity.
Public-private partnerships and incentives are crucial for driving innovation and investment in the housing sector, including the development of cost-effective construction methods, the speakers stressed.
Discussions highlighted the importance of addressing financing challenges for affordable housing projects, promoting accessory dwelling units and improving the perception of modular construction quality.
Bipartisan support exists for addressing the housing crisis, with a focus on empowering builders, streamlining regulations and ensuring access to affordable housing options for all Americans.
Tingerthal addressed the topic of modular design, noting that it has been shown to entail shorter construction times, lower construction costs and more effective use of skilled labor.
Citing data from the Modular Building Institute’s 2025 U.S. Permanent Modular Construction Industry Report, she noted time savings on modular construction projects compared to traditional construction projects consistently ranged from 20 percent to 50 percent. This is possible because 60 percent to 70 percent of the construction work can be performed offsite in a factory at the same time that work begins on site excavation, foundation and utility work at the project site.
Efficiency is particularly important, Tingerthal noted, given the need to reduce costs and the shortage of skilled labor in the construction sector. A 2023 study cited by the institute showed that total costs associated with projects using modular construction were 4 percent lower than comparable projects using traditional construction.
While demand for modular construction has increased in recent years, she noted that developers have been reluctant to undertake such projects due to a lack of government funding programs encouraging the use of such methods, a lack of clarity on how building codes apply to modular buildings, negative perceptions about the quality and durability of modular buildings and a general lack of familiarity with modular construction.