The Emerging Spectrum of Government-Led and Publicly-Owned Housing Development Models

Amid a national affordable housing shortage, a range of government-led development models are emerging as state and local governments explore more active roles in housing production and ownership. These proposals and models, sometimes termed “social housing,” vary widely. In some cases, state and local authorities directly build housing, while in others, they offer low-cost loans, investments, and tax exemptions to build mixed-income housing developments that are ultimately owned in some form by a government entity.

Traditional public housing authorities (PHAs) have faced significant underfunding and operational challenges over time, prompting a contemporary shift toward today’s conventional model where public entities finance, regulate, and incentivize low-income housing development that is undertaken by non-profit and for-profit private entities. But in various pockets of the country, there is growing interest in government entities taking a more aggressive role in stimulating housing development, including taking an ownership stake.

This interest grows out of both ideological and pragmatic reasons. However, an expansion of the public’s role in this direction raises several key considerations: Can these emerging models actually achieve deep affordability while maintaining high quality over time? How do they balance public ownership goals with financial sustainability? And at what cost? This policy brief examines emerging models of public development and ownership across three main groups, providing insights into their design, benefits, risks, and policy implications.