Published in RISMedia
As the United States faces a growing housing crisis, the need for bold solutions has never been more urgent. The formation of the new Joint Task Force by the Department of Housing and Urban Development (HUD) and the Department of the Interior (DOI) to identify public land suitable for housing development highlights the need for innovative strategies to address the inventory crisis. For years, communities have struggled with rising home prices and limited access to affordable housing, while millions of acres of federal land remain underutilized, presenting an opportunity to expand housing supply.
The National Association of REALTORS® (NAR) strongly supports responsible initiatives aimed at developing federal land to provide more housing options, create jobs and stimulate local economies. Considering the historical average level of housing construction and the 14 years of underproduction, our country still lacks 4.7 million homes. This shortage has hit middle-income buyers particularly hard, with about 376,200 listings in the $250,000-and-under price range missing from the market.
Real estate plays a crucial role in the nation's economy, representing 17.8% of U.S. GDP. Each home sale generates approximately $125,000 in local economic activity and creates two jobs. Furthermore, state and local governments collected more than $760 billion in property tax revenue in 2023, with property taxes accounting for 37.6% of their total tax receipts. Developing federal land responsibly can sustain economic growth while addressing housing affordability.
Some may question developing federal land, fearing the loss of wilderness or protected areas. However, NAR advocates for a measured approach incorporating environmental safeguards and public input.
The Interior Department oversees more than 500 million acres of federal land, while HUD brings expertise in housing policy and community development. Together, the two agencies aim to increase housing supply and decrease the cost of homeownership for millions of Americans.
Under this agreement, HUD will pinpoint where housing needs are most pressing and guide the process by working with state and local leaders. Interior will identify locations suitable for homes while considering environmental impact and land-use restrictions. The agencies will take inventory of underused federal properties, transfer or lease them to states or localities to address housing needs and support the infrastructure required to make development viable—all while ensuring affordability remains at the core of the mission.
Streamlining the regulatory process is essential to this partnership. Historically, building on federal land has been hindered by costly reviews and complex transfer protocols. This initiative will cut through bureaucracy by simplifying land transfers or leases to public housing authorities, nonprofits and local governments, ensuring these projects align with affordability goals. With responsible planning and collaboration, under-utilized federal land can help address the current housing crisis, ensuring more families have access to affordable homes while strengthening local economies.
For more information, visit nar.realtor.
