Affordable Housing on Federal Land: Will It Work?

suburban neighborhood with small starter homes
  • Federal agencies propose repurposing underused federal land to ease the U.S. housing crisis.
  • Housing affordability is at its lowest in over 30 years, with wages not keeping pace with home prices.
  • Most federal land is in remote areas, raising infrastructure and environmental challenges.
  • Bipartisan support exists for rethinking federal land use to stimulate local housing supply.
  • Las Vegas, hit hard by affordability constraints, could benefit significantly from additional developable land.

A new federal initiative is looking into a potentially important idea to address the U.S. housing crisis: building affordable housing on federal land that is not fully used. This effort, started under the Trump housing plan and supported by the U.S. Departments of Housing and Urban Development (HUD) and Interior (DOI), intends to reuse some federally owned properties to develop much-needed housing. As housing affordability drops to a 30-year low, cities such as Las Vegas are closely watching this possible change in policy – to see if it can be put in place successfully.

The Scope of the Problem: U.S. Affordable Housing Crisis

Housing affordability in America is in serious trouble. A recent report from First American showed that in 2023, affordability reached its worst point in over three decades. High home prices, ongoing inflation, and wages that have not increased enough have strained household budgets, making homeownership impossible for many people. The National Low Income Housing Coalition estimates that there is a national shortage of over 7 million affordable and available rental homes for very low-income households.

Las Vegas is a clear example. As a city with rapid population growth because of migration, economic improvement, and relatively low taxes, it has seen a large increase in housing demand. Home values have gone up a lot, worsening the problems of getting housing for first-time buyers and renters with low incomes. The amount of entry-level housing is decreasing quickly, and families are finding it harder and harder to afford homeownership, a pattern that is also seen in many Western cities.

Furthermore, new home construction has not kept up with the number of new households being formed. In many parts of the country—especially in areas with good opportunities—zoning rules, high land prices, and complex regulations have slowed down or completely stopped developments that are badly needed. In this situation, making new areas available for building could offer important help.

open desert land near city skyline

The Federal Land Opportunity: What’s Being Proposed

Federal land has not been fully considered as a way to solve America’s housing problems for a long time. The Trump housing plan has brought new attention to rethinking how these lands are used. In a joint action by HUD and DOI, led by HUD Secretary Scott Turner and Interior Secretary Doug Burgum, a task force has started work to study and reuse federally owned land for housing development.

In their Wall Street Journal op-ed, the secretaries described a large-scale idea: find suitable federal properties, transfer them or lease them for housing, and lower the amount of red tape—all while making sure to protect natural areas. They argue that the purpose is not just to build more homes but to build the correct kinds of homes in the correct locations.

The federal government owns about 650 million acres of land—roughly 28% of all U.S. land. A lot of this land is in Western states, where housing problems are especially serious. The initiative wants to reuse a small part of this land for housing, ideally in areas near cities or already partly developed areas with room to grow.

construction site on cleared land

How the Program Would Work

To put this idea into practice, it is necessary for different agencies to work together to match housing needs with available land. HUD will concentrate on finding areas with serious affordability issues and fast population growth. At the same time, the DOI will make a list of federal land holdings to decide which properties could be changed to housing use responsibly, without damaging environmental or strategic interests.

Several methods could be used

  • Land Transfers: Ownership of appropriate properties could be given to state or local governments, tribes, or nonprofit developers at a lower cost or no cost.
  • Long-Term Leasing: For areas where complete transfers are not wanted or are politically difficult, long-term leases could permit development with federal management.
  • Public-Private Partnerships (P3s): These team efforts bring private sector efficiency to building while keeping public policy aims related to affordability and sustainability.

Infrastructure readiness is very important. If there are no roads, utilities, water access, sewage systems, and schools, undeveloped land is not really usable. The plan includes working with local governments to make infrastructure planning, environmental reviews, and zoning approvals simpler.

remote landscape with rugged terrain

Challenges to Implementing Housing on Federal Land

Even though it seems promising, building affordable housing on federal land has many difficulties that are more than just finding good locations. First, most federal land is in far-off, not easily sold areas such as forests, deserts, or protected areas. Building affordably in these places is not practical from a money point of view because it costs so much to add infrastructure like roads, power, and water.

Furthermore, environmental protections create a major obstacle. A lot of federal land is under rules for conservation, protection of endangered species, or cultural heritage limits. Careful environmental impact studies are needed before any building can start, and this often adds years to how long projects take.

The complex set of laws is another big problem. Traditionally, planning for land use and zoning has been the job of local and state governments—not the federal government. Andrew Jakabovics of Enterprise Community Partners points out that “[Land use] has mostly been seen as a state and local issue.” To change this way of thinking and move toward a more federally organized way of doing things needs political skill, legal steps, and strong local cooperation.

Finally, the way affordable housing development is financed usually involves small profit margins. Developers require financial encouragement such as tax credits, grants, or loans with low interest to take on affordable housing projects that have low profits but big social value. Because of this, federal involvement must include specific ways to provide money to get and keep developers interested.

aerial view of las vegas urban sprawl

Las Vegas Spotlight: Why the Valley Is Watching

Las Vegas is a key example for this initiative. The city shows the pressures being felt in Western markets—a fast-growing population, limited land available, and rising housing costs. Clark County, which includes Las Vegas, is surrounded by thousands of acres of federal land, especially land managed by the Bureau of Land Management (BLM). Making even a small part of this land available for housing projects could give a lot of help.

Nevada Governor Joe Lombardo has officially asked the state legislature to push for the release of federal land near important city areas, explaining the reasons in a public letter. Real estate expert Steve Hawks agrees with this idea, noting the serious gap between housing demand and land that is available. “More land that can be developed at affordable prices could help make starter homes available again, which are currently impossible to get,” Hawks says.

In Las Vegas, not enough land—not demand—is the main problem. Increasing the amount of land available through federal releases could rebalance the market, making land buying less based on guessing and more on planning, especially for affordable housing developers.

housing development under construction

Market Dynamics: Can Supply Meet Demand?

Even though there may be a lot of federal land, supply will not be enough to meet demand unless rules, infrastructure, and money-related tools work together. Building affordable housing is not just about starting construction; it also means making sure it is affordable from the start, including

  • Zoning rules that require affordable units
  • Simpler permitting processes
  • Incentives for developers (LIHTC, housing bonds)
  • Money help for infrastructure
  • Community involvement and support

Land that is ready to build on near cities like Henderson or North Las Vegas has the best chance of being used quickly. However, even in these good areas, complex rules can make projects take a long time, possibly affecting both what investors want and community trust.

capitol building with cloudy sky

Cross-Partisan Political Support

One of the more positive things about the Trump housing plan is that it might get support from both political parties. Policymakers from both sides understand that housing affordability is a concern for voters that is more important than party lines. Republicans often prefer to use existing federal resources to create economic chances, while Democrats focus on affordability, fairness, and community unity. This plan gives both groups a message that fits with what they want to achieve.

Furthermore, a new group of urban planners and housing supporters from both parties—like the “Yes In My Backyard” (YIMBY) movement—has stressed useful, expandable ways to increase housing supply by changing zoning, getting land access, and reducing rules. This agreement makes a good situation for initiatives that appeal to both sides of the political aisle.

Critics’ Concerns and Misconceptions

Even with possible bipartisan support, there is still doubt. Environmental groups are worried about land-use changes that could harm natural systems or untouched wild areas. They warn that without careful control, developers might focus on profit instead of sustainability, going against the idea of federal land management.

Others reject the initiative as just a shallow political message. Can federal land really be made livable on a large scale, and also affordably? Those who oppose it compare the plan to past housing efforts that did not work—having big ideas but failing in practice.

However, Turner and Burgum talked about these problems in their op-ed, saying the plan is careful but creative. “This is not a situation where anyone can just build anywhere on federal lands,” they wrote. The focus is still on projects that have been checked for environmental impact and approved by communities, not just building without thinking.

timelapse construction site showing progress

Long-Term Potential vs. Near-Term Impact

In the short term, the Trump housing plan is not likely to quickly change the situation with affordability. Affordable housing systems depend on a difficult mix of financial arrangements, local support, and clear rules. Much of this does not happen quickly, even if land is obtained.

However, the long-term effect could be very important. By setting up a federal system for land access and cooperation between agencies, this initiative could make future developments simpler, make P3 models more common, and allow state and local governments to do more with fewer resources. If pilot project communities show success, the model could grow across the U.S., resulting in real increases in housing options.

team planning around building blueprints

Strategies for Success

Success depends on careful carrying out of the plan. Some ways to improve the chances are

  • Pilot Programs First: Try projects in very difficult markets such as Las Vegas to improve how different parts work together, permitting, and money flow.
  • Incentivize Developers: Use tools like LIHTC, quick approvals, and utility help to get experienced affordable housing builders interested.
  • Maintain Environmental Integrity: Require environment studies when choosing land to avoid negative reactions and legal challenges.
  • Sync With Local Policies: Match federal plans with local housing plans and general plans.
  • Public Engagement: Get communities involved early to avoid local opposition that has stopped similar projects in the past.

new suburban homes with desert mountains

What It Means for Las Vegas Investors and Buyers

Investors and homebuyers in Las Vegas could gain if these policies lead to actual building. If federal land is released, areas around the edge of the city could change from undeveloped desert land into important housing areas. Better infrastructure and changes in land zoning would also increase value. Steve Hawks suggests that investors watch for public notices, zoning updates, and BLM announcements.

“It will not happen immediately,” Hawks admits, “but if even a small number of very important properties become available, you will see a spread out effect in the housing market here.” These spread out effects could include

  • Making the supply of entry-level homes more stable or larger
  • Creating more job opportunities in building and services
  • Improving local infrastructure, such as roads, schools, and utilities

A Promising Start or a Political Soundbite?

The Trump housing plan has started a base for a good, but difficult, way to deal with America’s housing crisis by using federal land for affordable housing. Whether it works well depends not just on how much land is released, but also on how well different groups work together, how much developers get involved, and how much communities participate.

Las Vegas might become a strong place to test this idea. If the city makes a successful plan, it could show other cities how to do it too. While some are still worried about environmental and practical limits, the chance to match unused resources with a very large national need is worth looking into—with careful planning and teamwork between different groups. The coming year will be important in seeing if this new plan is a real turning point or just another missed chance.