How Much Influence Can the Federal Government Have on the Housing Crisis?

A couple of questions are fundamental to the debate about the housing affordability crisis.

2 minute read

July 8, 2019, 2:00 PM PDT

By James Brasuell @CasualBrasuell


Capitol Hill

Julie Clopper / Shutterstock

[Updated: August 19, 2019]

An article by Solomon Greene raises the question of whether deregulation can solve the affordable housing crisis, and, more specifically, whether the federal government can play a hand in that deregulation.

The Trump administration is making at least initial gestures toward trying to do just that. In June, President Donald Trump signed an executive order establishing the "White House Council on Eliminating Regulatory Barriers to Affordable Housing." Democratic candidates for president are also pushing for fewer regulations as one tool for combating the rising costs of housing. The New York Times Editorial Board yesterday announced its support published an editorial supporting the idea of more construction as one potential solution to housing affordability.

"This embrace of deregulation merits particular praise because the states most resistant to allowing housing construction are the strongholds of the Democratic Party, in the Northeast and along the Pacific Coast, and the most resistant voters are the wealthy residents of those states who provide so much of the funding for Democratic presidential campaigns," according to the editorial.

Returning to the earlier article, Solomon builds a case that the federal government has multiple avenues by which it can influence the housing market, including subsidies, ending or prohibiting exclusionary barriers, identifying the helpful regulations among the harmful, and supporting bottom-up initiatives. On that last point, Solomon writes:

Effective policies will also require a strong emphasis on community engagement from the outset, and ongoing monitoring of implementation and evaluation of outcomes. The federal government used this model under the Sustainable Communities Initiative and began to apply it more broadly through the US Department of Housing and Urban Development’s Affirmatively Furthering Fair Housing rule before Secretary Carson suspended its implementation. Mining lessons from each of these efforts will be key to the success of new initiatives.

Monday, July 1, 2019 in Urban Institute

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight

Group of anti-gentrification protesters holding signs like "Tourist go home" in Mexico City.

Mexico City Anti-Gentrification Plan Aims to Half Housing Deficit

The plan comes in response to protests that targeted ‘digital nomads’ who locals blame for driving up housing costs.

July 17 - Mexico News Daily

Small oundabout with plants on neighborhood street.

Chicago Has Quietly Built Hundreds of Neighborhood Traffic Circles

Thanks largely to one alderperson’s efforts, the city has made mini-roundabouts a key piece of its road safety strategy.

July 17 - WBEZ