The use of federal land for affordable housing is taking shape. America’s housing shortage continues, particularly in densely populated metropolitan areas. With rising home prices and rental costs outpacing wage growth, access to affordable housing remains a pressing issue. With that in mind, the U.S. government is taking a historic step to leverage its vast land resources to increase the housing supply.

A Joint Initiative to Expand Housing Access

In a Wall Street Journal op-ed, the U.S. Department of Housing and Urban Development (HUD) and the Department of the Interior (DOI) announced the Joint Task Force on Federal Land for Housing. They designed this partnership to streamline the process of making underutilized federal land available for housing development. The DOI oversees more than 500 million acres of federal land and will identify suitable locations for affordable housing. Meanwhile, HUD will work with state and local governments to ensure the projects align with community needs.

“Interior will reduce the red tape behind land transfers or leases to public housing authorities, nonprofits and local governments,” the opinion piece reads. The initiative will make it easier for the agencies to acquire or lease federal land for affordable housing projects. HUD and DOI say, “This isn’t a free-for-all to build on federal lands” but “a strategic effort to use our resources responsibly while preserving our most beautiful lands.”

Why Federal Land Matters for Housing Development

The U.S. desperately needs more housing, particularly in states where land constraints and regulatory barriers drive up costs. Data from the National Association of Realtors, the Bureau of Land Management, and the U.S. Census Bureau confirm that while only 7.3% of all federal land is located within metro areas with housing shortages, much of the available land lies in states with severe housing crises, including Nevada, Utah, California, and Arizona.

By targeting high-demand areas and working closely with local governments, this initiative can potentially lower housing costs and increase supply, helping families who have been priced out of the market.

Overcoming Regulatory Challenges

Historically, building on federal land has required lengthy environmental reviews, complex land transfer procedures, and conflicting agency priorities. This initiative seeks to change that by:

• Reducing bureaucratic delays in the transfer and leasing of land.
• Aligning federal, state, and local efforts to streamline approvals.
• Ensuring affordability and community development remain top priorities.

Focusing on Rural and Tribal Communities

Beyond urban centers, this plan prioritizes rural and tribal communities.