The 2026 midterm elections are expected to bring significant changes to federal housing policy as Democrats gain control of both chambers of Congress. According to the National Association of Home Builders (NAHB), Democrats are positioned to gain more than 30 seats in the House and have secured at least seven additional Senate seats, with several races still undecided. Housing affordability emerged as a major concern among voters, placing residential construction costs, housing supply and regulatory reform among the priorities facing the incoming Congress.
The new congressional majority is expected to pursue increased funding for affordable housing programs, workforce development initiatives and changes to federal tariff and immigration policies affecting the construction industry. Meanwhile, the Trump administration is expected to continue advancing deregulation efforts intended to encourage residential development. Bipartisan legislation, including the 21st Century ROAD to Housing Act and the proposed Bipartisan American Affordability and Jobs Act, could further address permitting delays, development costs and restrictions on housing construction.
For remodeling contractors and residential construction professionals, the evolving policy landscape could influence material costs, labor availability, project financing and regulatory requirements. NAHB has identified streamlined permitting, expanded financing opportunities, workforce development and more reliable building material supply chains as key priorities. With the nation facing an estimated housing shortfall of 1.2 million households, industry leaders are emphasizing bipartisan cooperation to reduce construction costs and improve housing affordability.
