As Housing Crisis Continues, Cities Take New Approaches

How U.S. cities are seeking to diversify their funding sources for housing assistance programs and eliminate barriers to housing construction.

1 minute read

February 4, 2025, 6:00 AM PST

By Diana Ionescu @aworkoffiction


Multifamily wood-frame buildings under construction in Fork, Utah with sunset sky and mountains in background.

Andrew / Adobe Stock

In an article for Smart Cities Dive, Kalena Thomhave outlines emerging trends in how cities approach reducing homelessness and alleviating the housing crisis, which continues to impact most American cities. “Just 34 affordable rentals are available for every 100 renters with extremely low income, according to the National Low Income Housing Coalition.”

As Thomhave notes, some cities are using their local power to reduce zoning restrictions on multifamily housing, enact tenant protection and rent stabilization laws, and outlaw discrimination against housing voucher recipients. “Alongside plans for the construction of permanent housing, cities are also building interim housing: safe, temporary housing for people experiencing homelessness.”

Cities are also looking for ways to reduce dependence on federal housing assistance programs. One such revenue source, the so-called “mansion tax” on transfers of high-value properties, was passed by over a dozen localities since 2018 and could become a significant source of new revenue for affordable housing programs.

Taking a different approach, some cities are taking more punitive measures against unhoused people after a Supreme Court ruling, Grants Pass v. Johnson, paved the way for the criminalization of homelessness.

Friday, January 31, 2025 in Smart Cities Dive

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 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

5 hours ago - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

6 hours ago - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business