State Trust Lands Offer Opportunity for Affordable Housing

Western states that hold millions of acres in land trusts are working to turn some of them into affordable housing.

2 minute read

October 31, 2023, 12:00 PM PDT

By Diana Ionescu @aworkoffiction


White, yellow, gray boxy apartment building with construction fence surrounding bottom floor in Albuquerque, New Mexico.

Luminaria Apartments, a senior affordable housing development built on state trust land in Albuquerque, New Mexico. | The New Mexico State Land Office / Luminaria Apartments

As the affordable housing crisis grows, states in the Western U.S. are looking to underutilized state-owned lands as potential sites for new housing development, reports Alex Brown in Stateline.

Many of the properties in question were granted to states as “working lands” designed to fund public schools and community services by “leasing them for activities such as logging, mining, grazing and oil and gas development,” and, more recently, renewable energy farms, campgrounds, and other uses.

The process has its own unique challenges. “State land agencies often lack the expertise to develop land themselves, and requirements that they sell parcels for market rates often mean affordable projects are priced out. Officials are still figuring out which mechanisms — leases, land exchanges with local governments, auctions to developers — might work best for getting housing built.” While much of this land isn’t suitable for housing, and some protects critical habitats or other sensitive environments, state leaders see it as an opportunity to diversify their revenue streams and build much-needed housing by making it easier to build on sites near current development.

In Colorado, a new Public-Private Partnership Collaboration Unit formed by the state will support building housing on state-owned land through financing and technical assistance. “Utah has begun looking at ways to promote affordable housing on trust lands, including working with local governments to enact zoning changes that allow increased density.” In New Mexico, an affordable senior housing facility built on trust land opened last year.

Thursday, October 26, 2023 in Stateline

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.

June 11, 2025 - Diana Ionescu

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Bird's eye view of half-circle suburban street with large homes.

In More Metros Than You’d Think, Suburbs are Now More Expensive Than the City

If you're moving to the burbs to save on square footage, data shows you should think again.

8 seconds ago - Investopedia

Color-coded map of labor & delivery departments and losses in United States.

The States Losing Rural Delivery Rooms at an Alarming Pace

In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and "harrowing" close calls are a growing reality.

June 15 - Maine Morning Star

Street scene in Kathmandu, Nepal with yellow minibuses and other traffic.

The Small South Asian Republic Going all in on EVs

Thanks to one simple policy change less than five years ago, 65% of new cars in this Himalayan country are now electric.

June 15 - Fast Company