Unlocking Federal Land Offers Limited Relief in Nation's Housing Shortage, Realtor.com® Finds

• New analysis shows most federal land is concentrated in the West, while the most acute housing shortages persist in the Northeast
• According to a Realtor.com^® analysis, it would take 10 million acres of land to build 4 million homes

AUSTIN, Texas, July 22, 2025 /PRNewswire/ -- A new report from Realtor.com^® finds that while proposals to unlock federal land for housing development may offer localized relief, they fall short of delivering a national solution to America's deepening housing crisis. The report found it would take 10 million acres of land to build 4 million homes, and the geography of federal holdings limits their utility in addressing the areas most in need.

"The U.S. faces an estimated shortage of 3.8 million homes, which is a shortfall that has built up over more than a decade and continues to push home prices out of reach for many Americans," said Realtor.com^® Chief Economist Danielle Hale. "Opening up federal land for housing development may generate incremental supply in parts of the West, but it's not a silver bullet. The most severe shortages exist in places like the Northeast, where developable federal land is virtually nonexistent. As a result, we've also got to make better use of the land we already have. That will require meaningful changes to zoning and land use policies to alleviate the housing affordability crisis, especially in high-demand markets."

Federally Owned Land Could Alleviate Housing Shortages in the West
Roughly 640 million acres of land are federally owned—nearly one-quarter of the U.S. landmass. However, the bulk of it is located in Alaska and the Western U.S., managed by agencies like the Bureau of Land Management (BLM). While states like Nevada, Arizona and Montana contain significant federal holdings, many of these areas either already have sufficient housing supply or lack the infrastructure, jobs and population density to support major new development.

By contrast, densely populated metros in the Northeast—where the housing shortage is most acute—have little or no federal land available. For instance, the region alone faces an 830,000-home deficit as of 2024, according to Realtor.com^® estimates, yet contains negligible BLM-managed land. Affordable housing in lower-cost regions could have the potential for long-term population shifts, but such migration would require major transformations in the labor market, especially increased support for remote work and new economic hubs.

Density Matters and So Does Location
If BLM land were made available, the number of homes that could be built would vary dramatically depending on development density. For example, at the density of Manhattan (61 units per acre), 90 acres of land could yield more than 5,000 homes, yet at the current average density in Las Vegas' Clark County (1 unit per 5 acres), those same 90 acres would produce only about 20 homes.

To build 3.8 million homes at densities representing where the middle half of the population lives, the U.S. would need to develop 4–31 million acres of land—an enormous range depending on how compact the development is. Building at a density matching the median county–where half of Americans live in a more dense area and half in a less dense area–would require nearly 10 million acres

Potential Housing Units by Density

Solving America's Housing Shortage Will Take Multiple Approaches
While selling small, well-located federal parcels—as seen in recent BLM auctions in Las Vegas—is a step in the right direction and may help individual markets, broader progress requires a more comprehensive toolkit.

"While freeing up federal lands for housing is one of many solutions on the table, addressing the housing crisis at scale requires aligning supply with where demand actually is," added Hale. "That means advancing local reforms, such as easing zoning restrictions, encouraging missing-middle housing, and investing in infrastructure and transit, to unlock land that's already close to jobs, schools and amenities."

Realtor.com^® believes solving the housing crisis requires a comprehensive approach, and that's the driving force behind its Let America Build Campaign. The initiative advocates for bold, pro-housing policies that cut through red tape, eliminate restrictive zoning, and modernize outdated regulations that stall or prevent new home construction. With the campaign, Realtor.com^® is calling on lawmakers at all levels to prioritize smart, forward-looking solutions to help unlock supply and improve affordability for millions of Americans.

Methodology
Census county population, housing unit and land area data used to calculate county housing density and population percentiles. Data from U.S. Geological Survey (USGS) Gap Analysis Project (GAP) and Federal Agencies utilized to quantify and visualize federal land availability.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Mallory Micetich, [email protected]

SOURCE Realtor.com