Unlocking Federal Lands: A Small Step Towards Alleviating America's Housing Crisis

The latest report from Realtor.com has shed light on the ongoing housing crisis in the United States, revealing that even though the idea of making federal land available for housing development could provide some localized relief, it is not a comprehensive solution to the nationwide shortage. It is estimated that a staggering 3.8 million homes are needed across the country to meet current demands, a deficit that has been gradually building over the last decade.

According to Realtor.com’s Chief Economist, Danielle Hale, simply opening up federal lands won’t solve this deep-rooted issue, especially when the most severe shortages are concentrated in areas like the Northeast, where accessible federal land is almost non-existent. The analysis suggests that approximately 10 million acres of federal land would be required to construct around 4 million homes, indicating a significant gap between what is needed and the practical availability of land suitable for development.

The Geography of Federal Land

The federal government owns about 640 million acres of land—which represents nearly one-quarter of the entire U.S. landmass. This land is primarily found in the Western U.S. and Alaska and is managed by various federal agencies, notably the Bureau of Land Management (BLM). While states like Nevada, Arizona, and Montana have significant federal land holdings, many of these areas either already possess adequate housing supply or lack the essential infrastructure, job opportunities, and population density that new housing developments would require.

In stark contrast, populous metropolitan areas in the Northeast are facing an acute housing deficit yet have minimal federal land available for potential development. For example, New York County requires over 830,000 homes just to keep up with demand, while having little to no available BLM-managed land. Thus, any initiatives aimed at unlocking federal land need to take into account the specific regional requirements and existing land use policies.

The Density Dilemma

The potential of federal land to alleviate housing shortages also hinges heavily on how dense developments can be. For instance, utilizing land at the density found in New York City, which has about 61 units per acre, could lead to the construction of more than 5,000 homes on just 90 acres. However, if one were to consider the sprawling average density seen in parts of Clark County, Las Vegas, which is roughly 1 unit for every 5 acres, the same parcel would yield only about 20 homes.

This disparity illustrates the importance of increasing housing density in order to close the gap in home availability. To address a deficit of 3.8 million homes, existing land could be developed to support anywhere between 4 million and 31 million acres depending on how densely the projects are constructed.

Holistic Approaches Required

Simply unlocking federal land serves as one of many potential solutions but does not address the crisis in a comprehensive manner. Further improvements in housing availability require a multi-faceted approach, which includes relaxing zoning restrictions, promoting the development of middle-density housing, and investing in infrastructure that accommodates easy access to employment centers, schools, and amenities.

Realtor.com advocates for a comprehensive strategy through its Let America Build Campaign, which urges lawmakers to prioritize effective housing policies that streamline the construction process. The campaign seeks to highlight the critical need for changes to regulations that currently hinder both new housing initiatives and accessibility.

By adopting a more strategic response to zoning and existing land use regulations across key markets, the U.S. can work towards not just opening up federal land but also maximizing the potential of all available resources to create affordable housing options for millions of Americans.

In conclusion, while unlocking federal land may provide some targeted assistance to areas with abundant federal acreage, the pressing issue remains unaddressed without significant regulatory reforms and a broader strategy that incorporates the needs of high-demand regions. To genuinely tackle the housing crisis, policymakers must embrace creative and forward-thinking solutions that prioritize affordable housing development across the nation.