The United States faces a housing affordability crisis, and local governments share a significant portion of the responsibility. For too long, local governments have limited the supply of housing by limiting where and how much developers can build. Now is the time for cities and counties to reduce barriers to building housing of all types.

According to recent census data, nearly half of the 45 million renter households in the United States are considered high cost, meaning they spend more than 30 percent of their income on housing. Within the group most affected by costs, 11.2 million households spend more than half of their income on rent. It’s not sustainable.

The monthly rate of housing construction has fallen 37% from its peak before the housing crash of 2008. The result? Tenants compete with each other, chasing a limited number of units and giving landlords pricing power. The search for safe, affordable housing often leads renters to live far from work, where public transportation is limited, and the economic stress of maintaining a vehicle creates additional burdens.

This raises two questions. Why is the United States not producing enough housing in economically vibrant, opportunity-rich areas? With such demand, shouldn’t the market respond with more supply?

Housing production is linked to the number of construction companies, labor availability, material costs and interest rates. But one main input is missing from the list: land.

Housing requires land, and local governments control what can be built through land use and zoning regulations. The limitations imposed by these ordinances – which control the location, height and mass of buildings – have prevented developers from meeting housing needs. Addressing the affordable housing crisis will require more local governments to encourage construction by allowing more housing of all types by right.

The origins of land use and zoning regulations date back to when American cities were experiencing rapid urbanization and industrialization in the late 19th century. This urban boom occurred at a time of largely unregulated economic activity. It was common for a factory belching smoke or discharging polluted water to be built near homes and retail businesses, harming public health and property values. Land use and zoning regulations were a late Progressive Era reform intended to restore order.

However, conditions in cities have changed dramatically over the past century. Today, local government exercises this power to micromanage all aspects of land development, including setting drastic limits on new housing. In many modern communities, land use and zoning regulations cause more harm than good.

Reform could take many forms, including eliminating minimum parking requirements, allowing accessory dwelling units, and allowing larger apartment buildings along transit corridors at high frequency. Local governments must also significantly reduce construction approval times.

Fortunately, the zoning reform movement is gaining momentum. For example, Minneapolis reformed its zoning in 2019 to allow for more multi-family housing and density along transit corridors, reduce parking requirements, and eliminate single-family zones throughout the city. Cincinnati passed an ordinance in 2023 legalizing accessory dwelling units in single-family zones. Also in 2023, Arlington County, Virginia voted to allow multi-family building construction throughout the county.

Changing regulations to support abundant housing would provide benefits to communities. Many local elected officials would like to encourage more housing, but reform policies are difficult. The most significant obstacle to change comes from entrenched local interests – particularly long-time property owners – who seek to maintain the status quo. The acronym NIMBY exists for a reason.

The federal government can help break this political impasse by rewarding communities that choose to replace outdated zoning regulations with rules that allow more housing of all types. To this end, Congress should authorize a new competitive grant program administered by the Department of Housing and Urban Development. Implementing a real land-use planning reform will require strong political commitment from local elected officials to overcome the objections of opponents.

Washington’s resources could provide the necessary incentive for success.

Updating local land use and zoning regulations to allow all types of new housing is a critical and often overlooked path to easing the burden of housing costs over time. The federal government could be a critical partner for local officials willing to engage in the hard work of reform.

Kevin De Good is the director of infrastructure policy at the Center for American Progress.