Congress Moves to Boost Housing Supply as Affordability Crisis Hits Older Adults

New bipartisan legislation targets legal barriers, financing gaps and rising costs that are pushing many out of their homes

Molly Snow,

Updated June 02, 2026

AARP

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Updated June 02, 2026

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As older adults on fixed incomes contend with a nationwide housing shortage, many are finding it difficult to afford and maintain homes that also meet their needs as they age.

Outdated laws, high prices and red tape limit the availability of diverse housing options, like duplexes and multifamily housing, that can be constructed to support older adults who want less space to maintain and cheaper prices.

That’s why AARP is advocating for expanded housing options for older adults by urging Congress to pass legislation that modernizes land-use policies and boosts affordable housing.

And recently, there’s been progress.

The U.S. House of Representatives overwhelmingly passed a housing affordability package May 20, signaling growing momentum in Congress to address the nation’s housing crisis. The amended bill, called the 21st Century ROAD to Housing Act, builds on a proposal the Senate passed earlier this year, called the Renewing Opportunity in the American Dream (ROAD) to Housing Act. Both packages aim to reduce high housing costs by increasing the supply of homes.

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AARP urged House lawmakers to advance the sweeping legislation, emphasizing the real need for it among older Americans.

“Rising housing costs and constrained supply are putting increasing pressure on older adults,” wrote Bill Sweeney, AARP’s senior vice president of government affairs, in a May 19 letter to the House. The package is an “important first step" towards addressing the issues, he wrote, adding that it “represents the strongest bipartisan housing legislation considered this year.”

What's in the landmark legislation?

The bills moving through both chambers of Congress could lead to some of the most significant housing reforms America has in a decade. While the two packages share many core goals — like increasing housing supply, modernizing federal programs and reducing local red tape that hinders builds — they differ on some key provisions. Lawmakers must now negotiate differences between the House and Senate bills and vote on a final version before it heads to the president’s desk for signature.

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AARP is backing many provisions that appear in the bills, including:

Updating and streamlining federal rural housing programs to make financing applications and approvals less burdensome
Creating modern guidance for state and local rules that support a diverse range of affordable housing and reform exclusionary land-use policies
Loans and grants for low-income homeowners to address home repair needs

AARP “especially appreciates the continued emphasis on preserving existing homes, supporting aging in place for older adults, and enhancing rural housing financing options to promote the development of accessory dwelling units (ADUs) in rural communities,” Sweeney wrote of the House bill.

Sweeney also noted, however, that some provisions that were stripped from earlier versions — such as incentives for transit-oriented housing developments and permanent authorization of the Community Development Block Grant Disaster Recovery (CDBG‑DR) program — should be reconsidered as lawmakers work toward a final bill. The CDBG‑DR program helps communities rebuild after hurricanes, floods, wildfires, and other disasters.

Housing options needed for older adults

Housing reforms are crucial for America’s older population. More than 70 percent of adults say they want to stay in their homes and communities as long as possible, according to the 2024 AARP Home & Community Preferences Survey. Yet expensive mortgages or rents, costs of home upkeep and property taxes remain some of the key reasons older adults expect to move, the survey found.

And finding a new home isn’t easy: There are only 35 affordable rental homes available for every 100 extremely low-income renter households, according to the National Low Income Housing Coalition.

At the same time, people 50 and older are the fastest-growing population experiencing homelessness in the country, many for the first time.

“There is such a stereotype everywhere of who is homeless,” said Marcy Thompson, vice president of programs and policy at the National Alliance to End Homelessness. “We don’t think of older adults or our grandparents or parents, and we should because they’re the most at risk at this point.”

AARP has also worked to support other changes in housing for older adults. We backed the expansion of the Low-Income Housing Tax Credit (LIHTC), which awards tax credits to homebuilders for building or renovating low-income housing. The One Big Beautiful Bill Act, signed into law by President Trump on July 4, expanded and made changes to the program.

New provisions, some taking effect this year, increase the number of tax credits states can award and lower the bond-financing threshold developers must meet. This means more projects will be eligible for the tax credit.

“The incentive provided through the LIHTC is critical because rental income and returns from investment in affordable housing are not always enough to cover project costs,” wrote Brad Gudzinas in an AARP Public Policy Institute brief.

AARP also continues to push for affordable housing at the state and local levels, including legislation that makes it easier for homeowners to build ADUs, such as in-law suites, basement apartments or backyard cottages. With the help of AARP, 21 states have passed laws in recent years permitting ADU construction or updating existing laws to be more permissive, and many localities have followed suit.

These smaller homes can help older adults age in place, stay close to family and caregivers, or generate additional income, while also increasing the overall supply of affordable housing. They are “a way to get more housing options in the neighborhoods where people want to be,” says Rodney Harrell, vice president of family, home and community at AARP’s Public Policy Institute.

Emily Paulin contributed to this story.

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Molly Snow is a writer for AARP covering advocacy issues and state news. She also writes AARP's Today's Tips podcast. She previously worked at other news outlets, including Federal Times, McClatchy and Gannett.