The blue wave brings an opportunity to rethink housing policy. Here's where I'd start.
The Saragossa Innovation house in Venice, Florida, demonstrates a high-performance affordable model for a single family home. Photo: U.S. Department of Energy.
If I had five minutes with the newly elected Democratic majority in Congress, I'd skip the congratulations and get straight to housing. It’s a baseline concern for millions of Americans.
Some of the first words from Hakeem Jeffries’ mouth, likely the next Speaker of the House, after the election were “We ran on affordability. We won on affordability. And now it's our job to govern on affordability.” Let’s remind him of that frequently. According to the latest Bureau of Labor Statistics data, Americans now spend nearly 34 cents of every household dollar on housing. What makes a home affordable (or not)? The purchase price, of course; but also the circular bills: energy, insurance, maintenance, taxes and the ever-increasing threat of repairing damage from extreme weather.
Here’s my list of recommendations:
1. Build the Homes People Can Afford, Not Just More Homes.
Before throwing more money at housing construction, Washington needs to recognize that America doesn't have one housing market. It has hundreds. Builders in parts of Florida, Texas and Arizona are drowning in inventories of unsold homes, even as buyers in California and the Northeast struggle to find anything within reach. Federal housing policy should reflect those differences. In low inventory markets, remove barriers to smaller homes, infill development and missing-middle housing. Where inventories are already elevated, reward affordability—instead of subsidizing the next luxury townhouse project.
2. Squeeze Zoning Hard.
In many communities, local rules have made construction of modest homes, duplexes, cottage developments and ADUs a non-starter for builders. Congress can't directly rewrite NIMBY zoning ordinances, but it can leverage change by cutting off (or rewarding) funding. Most large housing projects need financial help for sewers, roads and utilities. Congress can steer the big money to projects that create affordable, high performance homes within easy reach of jobs and services. South Park Cottages near Atlanta, for example, offers a hint at how much “slack” is our outdated housing policies. Its 29-home community shows that buyers will respond even to ultra-compact floorplans, with creative site planning in expensive metropolitan markets.
3. Reward Performance, Not Just Square Footage.
I’m not saying every new community has to switch to tiny house footprints. That’s just one niche, not the mainstream. But we can build smaller—and better—if buyers perceive they are getting more value per square foot. Smaller footprints can reduce material and construction costs, leaving room for better insulation, efficient equipment and durable products. Here’s another example: Habitat for Humanity's 1,290-square-foot Saragossa Innovation Home in Florida, built to DOE Zero Energy Ready Home specifications, demonstrates the principle. Its modeled monthly energy cost was approximately $70. Washington can support this intelligent downsizing of our housing stock, with financing and appraisal practices that recognize the many benefits to buyers and communities.
4. Undo the Demolition of Energy Tax Credits
The GOP wiped out a lot of energy efficiency incentives during their two years of slashing public incentives while increasing the deficit by $4.3 trillion. Those energy incentives need to come roaring back. Congress should immediately pass updated credits for heat pumps, insulation, efficient windows and water heaters. The rebate process should be simple, like the Efficiency Maine program in the Northeast.
5. Treat Insurance as a Housing Affordability Issue.
In Florida and other disaster-prone states, insurance costs are threatening the financial viability of homeownership. Instead of subsidizing risk indefinitely, the Feds can help homeowners reduce it. That doesn’t mean handing out checks directly. It means subsidies and tax credits for fortified roofs, impact-resistant windows, flood mitigation and wildfire-resistant construction. Congress should strongly urge insurers to become part of the solution—offering deeper discounts for building upgrades such as metal roofs, fire-resistant siding, spray foamed roof assemblies, and even tile floors and concrete block walls in flood zones.
6. Leave Immigrants Alone.
We can't build affordable housing without enough skilled workers. I’ve covered this business for 30 years. I don’t know if I’ve ever met an experienced tile subcontractor team that’s not Hispanic and highly skilled. You know. You all know this. Yes, we’d love to have more young, local workers joining out team, but the business relies on hard working, incredibly efficient immigrant workers. They shouldn’t be afraid to come to work. In fact, we should incentivize them with a faster track to full citizenship once they put in a certain number of years on the job.
7. Make Factory-Built Housing Easier to Deliver.
Modular and panelized construction can reduce waste, improve quality control and shorten construction schedules. Yet inconsistent codes, financing practices and local approvals can undermine those advantages.
Washington can help create more consistent pathways for factory-built housing without sacrificing safety or performance.
8. Invest in Infrastructure That Unlocks Housing.
A parcel of land isn't buildable simply because it's available. Water, sewer, transportation and electrical infrastructure often determine whether housing can be developed economically.The Feds should steer funding toward the projects that create the best housing, in the most livable area, at the most affordable price point. Not sure how to identify these places? Ask AI.
9. Build for the Climate We're Actually Living In.
We know more about flood, wind, wildfire and extreme heat risks than ever before. Yet much of our housing stock remains poorly prepared. Federal programs should reward construction and retrofits that reduce exposure to those hazards. Resilience isn't an environmental luxury. It's a financial necessity.
10. Publish the Results.
Finally, give taxpayers a transparent scorecard. How many homes were built? At what cost? How much did energy bills fall? Did insurance become more affordable? Did the programs actually help first-time buyers? If an initiative doesn't deliver, change it.
About Matt Power
Matt Power is editor-in-chief of Green Builder. He has covered housing innovation and sustainability for nearly three decades and is an award-winning writer, editor, and filmmaker.
Veteran journalist Matt Power has reported on innovation and sustainability in housing for nearly three decades. An award-winning writer, editor, and filmmaker, he has a long history of asking hard questions and adding depth and context as he unfolds complex issues.
Dear Democrats: Get to Work
The blue wave brings an opportunity to rethink housing policy. Here's where I'd start.
If I had five minutes with the newly elected Democratic majority in Congress, I'd skip the congratulations and get straight to housing. It’s a baseline concern for millions of Americans.
Some of the first words from Hakeem Jeffries’ mouth, likely the next Speaker of the House, after the election were “We ran on affordability. We won on affordability. And now it's our job to govern on affordability.” Let’s remind him of that frequently. According to the latest Bureau of Labor Statistics data, Americans now spend nearly 34 cents of every household dollar on housing. What makes a home affordable (or not)? The purchase price, of course; but also the circular bills: energy, insurance, maintenance, taxes and the ever-increasing threat of repairing damage from extreme weather.
Here’s my list of recommendations:
1. Build the Homes People Can Afford, Not Just More Homes.
Before throwing more money at housing construction, Washington needs to recognize that America doesn't have one housing market. It has hundreds. Builders in parts of Florida, Texas and Arizona are drowning in inventories of unsold homes, even as buyers in California and the Northeast struggle to find anything within reach. Federal housing policy should reflect those differences. In low inventory markets, remove barriers to smaller homes, infill development and missing-middle housing. Where inventories are already elevated, reward affordability—instead of subsidizing the next luxury townhouse project.
2. Squeeze Zoning Hard.
In many communities, local rules have made construction of modest homes, duplexes, cottage developments and ADUs a non-starter for builders. Congress can't directly rewrite NIMBY zoning ordinances, but it can leverage change by cutting off (or rewarding) funding. Most large housing projects need financial help for sewers, roads and utilities. Congress can steer the big money to projects that create affordable, high performance homes within easy reach of jobs and services. South Park Cottages near Atlanta, for example, offers a hint at how much “slack” is our outdated housing policies. Its 29-home community shows that buyers will respond even to ultra-compact floorplans, with creative site planning in expensive metropolitan markets.
3. Reward Performance, Not Just Square Footage.
I’m not saying every new community has to switch to tiny house footprints. That’s just one niche, not the mainstream. But we can build smaller—and better—if buyers perceive they are getting more value per square foot. Smaller footprints can reduce material and construction costs, leaving room for better insulation, efficient equipment and durable products. Here’s another example: Habitat for Humanity's 1,290-square-foot Saragossa Innovation Home in Florida, built to DOE Zero Energy Ready Home specifications, demonstrates the principle. Its modeled monthly energy cost was approximately $70. Washington can support this intelligent downsizing of our housing stock, with financing and appraisal practices that recognize the many benefits to buyers and communities.
4. Undo the Demolition of Energy Tax Credits
The GOP wiped out a lot of energy efficiency incentives during their two years of slashing public incentives while increasing the deficit by $4.3 trillion. Those energy incentives need to come roaring back. Congress should immediately pass updated credits for heat pumps, insulation, efficient windows and water heaters. The rebate process should be simple, like the Efficiency Maine program in the Northeast.
5. Treat Insurance as a Housing Affordability Issue.
In Florida and other disaster-prone states, insurance costs are threatening the financial viability of homeownership. Instead of subsidizing risk indefinitely, the Feds can help homeowners reduce it. That doesn’t mean handing out checks directly. It means subsidies and tax credits for fortified roofs, impact-resistant windows, flood mitigation and wildfire-resistant construction. Congress should strongly urge insurers to become part of the solution—offering deeper discounts for building upgrades such as metal roofs, fire-resistant siding, spray foamed roof assemblies, and even tile floors and concrete block walls in flood zones.
6. Leave Immigrants Alone.
We can't build affordable housing without enough skilled workers. I’ve covered this business for 30 years. I don’t know if I’ve ever met an experienced tile subcontractor team that’s not Hispanic and highly skilled. You know. You all know this. Yes, we’d love to have more young, local workers joining out team, but the business relies on hard working, incredibly efficient immigrant workers. They shouldn’t be afraid to come to work. In fact, we should incentivize them with a faster track to full citizenship once they put in a certain number of years on the job.
7. Make Factory-Built Housing Easier to Deliver.
Modular and panelized construction can reduce waste, improve quality control and shorten construction schedules. Yet inconsistent codes, financing practices and local approvals can undermine those advantages.
Washington can help create more consistent pathways for factory-built housing without sacrificing safety or performance.
8. Invest in Infrastructure That Unlocks Housing.
A parcel of land isn't buildable simply because it's available. Water, sewer, transportation and electrical infrastructure often determine whether housing can be developed economically.The Feds should steer funding toward the projects that create the best housing, in the most livable area, at the most affordable price point. Not sure how to identify these places? Ask AI.
9. Build for the Climate We're Actually Living In.
We know more about flood, wind, wildfire and extreme heat risks than ever before. Yet much of our housing stock remains poorly prepared. Federal programs should reward construction and retrofits that reduce exposure to those hazards. Resilience isn't an environmental luxury. It's a financial necessity.
10. Publish the Results.
Finally, give taxpayers a transparent scorecard. How many homes were built? At what cost? How much did energy bills fall? Did insurance become more affordable? Did the programs actually help first-time buyers? If an initiative doesn't deliver, change it.
About Matt Power
Matt Power is editor-in-chief of Green Builder. He has covered housing innovation and sustainability for nearly three decades and is an award-winning writer, editor, and filmmaker.
By Matt Power, Editor-In-Chief
Veteran journalist Matt Power has reported on innovation and sustainability in housing for nearly three decades. An award-winning writer, editor, and filmmaker, he has a long history of asking hard questions and adding depth and context as he unfolds complex issues.