Question Brief – 2/19/26

February 19th, 2026

Question: What can Congress do to address rising housing costs?

Thought Process:

America faces an increasingly large housing crisis, ultimately boiling down to a lack of supply and high demand. Congress has limited power over the municipal levers that would need to be pulled to fully enact solvency for the U.S. housing crisis, but they can use the tools afforded to them to push for adequate changes.

1. Push for zoning reform

1. Most housing restrictions come from cities and states. Congress can’t directly rewrite local zoning laws, where most housing construction issues stem from. 
2. Congress can incentivize pro-housing zoning reforms by conditioning certain federal grants that they hold control over. 
3. By linking federal funding to land-use reform, Congress would encourage jurisdictions to expand supply without directly preempting local authority. Over time, increased housing construction would alleviate current supply shortages.

2. Strengthen and Expand Federal Affordable Housing Programs

1. Existing federal housing assistance programs serve millions of Americans. However, funding levels are insufficient to meet demand. Only a fraction of eligible households receive rental assistance, and affordable housing development faces financing gaps due to rising construction and borrowing costs.
2. Congress could expand allocations for programs, and provide financing to affordable housing developers. Modernizing these programs to better reflect regional cost differences and incentivize mixed-income development could also improve their efficiency.
3. Expanded support would increase the stock of affordable housing units and provide immediate rental relief to low-income households.

3. Reducing Construction Costs and red tape

1. High material costs, labor shortages in the construction sector, supply chain disruptions, and lengthy permitting processes have driven up the cost of new housing development. Federal policies are increasing expenses and delaying project timelines.
2. Congress could reassess tariffs on essential building materials and streamline federal environmental review procedures, reducing per unit construction costs.
3. Lower development costs would improve project feasibility, encouraging private investment in new housing construction and faster approval timelines would reduce financing costs and increase overall housing output.