A recent Department of Housing and Urban Development (HUD) report highlights potential state and local policy reforms aimed at addressing the nation's escalating housing affordability crisis. Although government reports typically draw limited public attention, this particular three-page brief, released last month, offers a range of recommendations that could attract bipartisan support.
The HUD document emphasizes that while federal agencies have limited capacity to control home prices directly, regulatory changes at the state and local levels could ease barriers to construction and help increase housing supply. Key proposals include capping permitting fees, streamlining or eliminating redundant review processes, and shortening timelines for local agencies to approve development plans.
The suggested reforms face opposition from some environmental groups and neighborhood activists who advocate for growth limits. However, growing political consensus acknowledges that rising housing costs are a pressing issue necessitating increased construction. This has translated into legislative progress in Washington: both the Senate and House have passed bills aimed at easing federal regulatory hurdles for housing development, and negotiators recently announced a compromise to unify the two measures.
Recent polling by the Bipartisan Policy Center indicates broad public backing for regulatory reform, with more than 75% of registered voters supporting streamlined federal housing regulations. This support extends nearly equally across party lines, with 77% of Republicans and 78% of Democrats in favor. Additionally, more than 60% of voters in both parties expressed a desire for the federal government to encourage changes in local zoning and land use that would facilitate new construction.
Efforts to increase housing supply through state and local initiatives have gained traction nationwide. Since 2017, over half of U.S. states have implemented policies aimed at expanding housing availability, including legalizing “middle housing” options such as townhouses and starter homes on smaller lots, as well as encouraging denser development near transit hubs.
Examples of such efforts include Portland, Oregon, where recent reforms have stimulated a rise in the construction of duplexes and triplexes, leading to decreased prices for these housing types. Austin, Texas, experienced a nearly doubling of rents between 2010 and 2019, but reforms permitting increased housing density have contributed to a 30% growth in housing stock and a subsequent decline in median rents. Similarly, Minneapolis’s decision to remove off-street parking requirements has fostered a housing expansion.
The core message advanced by these varied policies is straightforward: making the development of new homes easier can help alleviate the housing affordability challenge. State and local governments have access to a wide array of tools to implement such changes, signaling momentum toward broader policy adoption on this issue.