The housing crisis requires a clearer understanding of what we call “Housing Federalism,” including what reforms are necessary, who delivers them and how they are then coordinated, diffused and scaled across the country. The U.S. housing system is highly federated, comprising a financing and consumer protection regime (which has historically been disproportionately federal) and a land use regime (which historically has been quite local, although that varies state by state).
The balance of responsibility for housing, however, is now changing. The federal government has in some ways become an unreliable partner, undermining certain functions while retaining and expanding others. States and localities are stepping up their actions to boost housing production and alleviate their housing shortages. Financial institutions, start-ups, established companies and philanthropies are experimenting with new ways to build, finance and operate housing.
This white paper describes the evolution and potential future of Housing Federalism. The paper argues for restoring the federal government’s role as a valued, trusted and indispensable partner. But it also contends that states, localities and the private and civic sectors must realize their full potential as catalysts of housing production and preservation. To that end, it recommends a series of governance reforms at the state and local levels to enable collaborative efforts within government and across sectors, align with metropolitan housing markets and, most importantly, create a National Housing Solutions Exchange to accelerate the diffusion of innovative practices and policies, taking the “best to the rest.”
Download NHCTF National Housing Agenda – Governance
This paper was produced in partnership with the National Housing Crisis Task Force. The National Housing Crisis Task Force has released seven white papers from leading research institutions, spanning the building blocks of America’s housing system: data, regulation, land, capital, construction, operational sustainability, and governance. The collection will inform the Task Force’s National Housing Agenda, to be published in early 2027. View the full collection at nationalhousingcrisis.org/HousingWhitePapers.