Is Congress having its YIMBY moment?

The housing activists known as YIMBYs have spent most of the past decade fighting their battles at the state and local levels, pushing to loosen strict zoning rules they argue have led to a national home affordability crisis.

But now, the movement may be quietly inching closer to its biggest win yet on Capitol Hill, complete with a namesake bill. Last week, the House Financial Services Committee unanimously approved the bipartisan YIMBY Act — the acronym stands for Yes In My Backyard — which would require many localities that receive...