The federal policies regarding housing remain uncertain. While the National Housing Crisis Task Force has suggested recommendations to boost federal involvement in housing, nothing seems to be done; in fact, there have been suggestions of rollbacks on tools designed to help with new housing.
As a result, state and local jurisdictions are starting to pay more attention and are passing their own rules and legislation to help meet the housing crisis. The ULI Terwilliger Center for Housing’s recent report, “Building the Future 2025,” discussed how state and local policies can be used to help reform the current situation.
One suggestion in the report was to remove the barriers that impede housing supply expansion. “Across the country, public officials and nonprofit partners face a common set of challenges,” the report said. These challenges include outdated zoning codes, permitting processes that take years, rigid assessment systems and tax burdens that impact affordable housing.
The report pointed out that in 2025, cities and states are moving to modernize the systems, pairing zoning reform with targeted incentives.
The second suggestion was to align housing strategies with infrastructure, data and public resources. “Success increasingly depends on interagency and cross-sector planning efforts,” which move towards systems thinking in housing policy. For instance, connecting housing with transit and infrastructure can help generate housing in locations close to jobs, schools and essential services.
The third suggestion was to leverage land, capital and alternative building approaches to help provide needed housing. The report explained that “traditional financing mechanisms are proving insufficient to meet today’s affordability challenges.” As a result, public sector leaders are working with different funding strategies, including loan funds, bond allocations and tax increment financing. Such tools are meant to help bridge gaps and move stalled projects ahead.
The report also describes housing development reform progress in states including Massachusetts, New York, Georgia and Florida. “Across the country, governments are no longer waiting for federal permission—they are creating their own pathways to housing stability, affordability and opportunity,” the report said.
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