The Departments of the Interior and Housing and Urban Development are considering the option of using federal land for housing construction to address the persistent housing shortage, estimated at over 20 million homes. The success of this initiative will rely not only on its swift and extensive implementation but also on ensuring that any newly accessible land is not hindered by local land use regulations that contribute to the scarcity and high cost of housing.

The current shortage of homes is mainly due to overly strict local land-use regulations that favor costly homes on large plots. In many western states, land available for housing development is restricted by federal holdings near rapidly expanding urban areas like Las Vegas, Phoenix, and others.

Western land was opened up for large settlements with the Homestead Act in 1862, which allowed the sale of over 420,000 square miles of land — about 11 percent of the nation. Over time, as prime agricultural land became scarce, claims decreased significantly, nearly disappearing by the 1930s.

The formation of the Bureau of Land Management in 1946 marked a shift from selling land to maintaining unsold land. In 1976, the Federal Land Policy and Management Act abolished the Homestead Act, marking a shift towards federal ownership, environmental concerns, and changing public sentiments.

However, as sunbelt cities grew rapidly, what was previously deemed as worthless land became valuable. Selling federal land became complex and politically sensitive under the Federal Land Policy and Management Act, with western cities pushing back against restrictions. By the 1990s, the situation had become too urgent to overlook, leading to initiatives like the Southern Nevada Public Land Management Act to address housing shortages in places like Las Vegas.

Efforts under these initiatives have shown mixed results, with a significant portion of designated land remaining unsold. The sold land has been subjected to local zoning regulations, imposing constraints like minimum lot sizes and frontage requirements that hinder the construction of affordable homes.

In states like Nevada, Arizona, Utah, Idaho, California, and Oregon, high home prices are attributed to federal land limitations and costly local regulations, resulting in cities becoming expensive and restricting the growth of new urban centers.

The new strategy aims to review the assumptions of the Federal Land Policy and Management Act comprehensively across affected municipalities. It has the potential to streamline the process of selling federal land, alleviate cost pressures on western urban markets, enable new cities to develop in suitable areas, and address environmental concerns.

However, the affordability of resulting homes that are accessible to most Americans will be closely linked to local land use regulations. Overzealous zoning policies have shown to raise costs significantly and restrict the building of affordable homes.

Allowing for smaller, more affordable homes, whether single-family or multifamily units, carries environmental benefits like efficient land use, reduced sprawl, and decreased water usage. The amount of land required for today’s starter homes is moderate compared to total federal acreage, presenting an opportunity to demonstrate inclusive policies that cater to various income groups when it comes to homeownership.

Charles Gardner, a research fellow at the Mercatus Center at George Mason University, underscores the importance of federal authorities considering these issues as they seek to open up land for Americans in search of affordable housing. They can set an example for local governments by encouraging policies that foster both starter homes and homes that are affordable for all.