Building the Future: How Small Home Builders are Closing America's Housing Gap

The House Committee on Small Business held a hearing on May 22, 2026, titled "Building the Future: How Small Home Builders are Closing America's Housing Gap." The discussion focused on the critical role of small home builders in addressing the national housing shortage and affordability crisis. Witnesses highlighted key procurement-related challenges including regulatory burdens, access to capital, labor shortages, and rising material costs exacerbated by tariffs and inflation. The committee examined recent legislative efforts such as the 21st Century Road to Housing Act aimed at reforming federal housing programs and regulatory frameworks to support small builders. Testimonies emphasized the potential of modular and industrialized housing construction to reduce costs and speed delivery, while noting financing difficulties due to fragmented code compliance and lack of standardized certification. Several members discussed the need for expanded financing options through government-sponsored entities like Fannie Mae and Freddie Mac, and the impact of immigration policies on the construction workforce. The hearing also addressed the effects of federal regulations on homebuilding costs, the importance of workforce development, and the challenges posed by insurance and climate risks. Overall, the committee underscored the necessity of coordinated federal action to lower costs, streamline regulations, and enhance capital access to empower small homebuilders and increase affordable housing supply.