A growing debate in housing policy questions whether the federal government should grade states and cities on their zoning laws. Supporters of such an effort argue it could incentivize local governments to ease restrictive zoning practices that limit housing development and drive up home prices. Critics, however, fear a federal grading system could overstep local authority and impose one-size-fits-all standards that don’t account for local conditions.
The Biden administration has increasingly emphasized housing affordability, and discussions around zoning reform have gained traction among policymakers. Some advocates propose tying federal funding to how well localities perform under certain zoning criteria to encourage reforms that allow for more multifamily housing and denser development.
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