Sweeping Housing Bill Becomes Law as Older Americans Struggle With Affordability Crisis

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

Molly Snow,

Updated July 13, 2026

AARP

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Updated July 13, 2026

Key takeaways

The bipartisan 21st Century ROAD to Housing Act is now law.
The legislation supports disaster recovery, rural housing programs, affordable housing development and home repair assistance for low-income homeowners.
AARP endorsed four bills that were included in the final package.

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.

Sweeping housing legislation known as the 21st Century ROAD to Housing Act became law around midnight on July 10, about two weeks after both chambers of Congress overwhelmingly passed the bill and signaled growing momentum to address the nation’s housing crisis. House Speaker Mike Johnson sent the bill to President Donald Trump’s desk on June 29, starting a 10-day clock for him to either sign the legislation or let it become law without his signature.

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“Housing affordability is one of the most urgent issues facing older Americans, and this action delivers real solutions,” says Nancy LeaMond, chief advocacy and engagement officer at AARP. “For years, AARP has fought to expand housing supply, preserve the homes people already live in and help older adults stay in the communities they love.”

AARP has long advocated for several key pieces of the housing legislation, including measures to improve disaster recovery, expand affordable rural housing, allow for critical home repairs for low-income homeowners and expand housing supply.

Outdated laws, high prices and red tape limit the availability of diverse housing options, like duplexes and multifamily housing, that can be constructed to support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 lower prices.

“Older Americans want to stay in their homes and communities as they age, but too often they’re squeezed by higher costs, challenges updating their homes to meet their needs, and a lack of other affordable options,” says Bill Sweeney, AARP senior vice president of government affairs.

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Earlier this year, AARP urged House lawmakers to advance the historic legislation, emphasizing the need among older Americans.

“AARP fought hard to make sure the 21st Century ROAD to Housing Act included provisions to help older Americans make their homes safer and more accessible, strengthen housing options in rural communities and expand the supply of affordable housing,” Sweeney says.

What’s in the landmark housing legislation?

The legislation could lead to some of the most significant housing reforms America has seen in a decade.

AARP endorsed four bills in the final package that do the following:

Help states, localities and households recover faster from natural disasters
Update and streamline federal rural housing programs to make financing applications and approvals less burdensome
Create modern guidance for state and local rules that support a diverse range of affordable housing
Establish loans and grants for low-income homeowners to address home repair needs

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 and 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. Only 35 affordable rental homes are 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 for 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 Trump on July 4, 2025, 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 accessory dwelling units, or 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.

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The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

Emily Paulin and Miriam Cross contributed to this story.

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.