It comes after David Davis quit as secretary of state for exiting the European Union.
It has not yet been announced who will be the new housing minister, which will be the third person in the role in just over a year.
Raab became housing minister in January following a wider reshuffle of Theresa May’s cabinet and minister roles.
He replaced Alok Sharma who had only moved into the role in June 2017, taking the place of Gavin Barwell who lost his seat in the General Election.
The Prime Minister has pledged to fix “Britain’s broken housing market” and said it is her personal mission to deliver more new homes faster.