Americans continue to face crushing housing costs, but the culprit isn't federal policy—it's state and local regulations that strangle supply and inflate prices. That's according to an op-ed published by the National Taxpayers Union on June 4, 2026, by Thomas Aiello. The piece argues that while President Trump and Congress recognize housing affordability as a critical kitchen-table issue, Washington has "relatively few effective tools at its disposal" because the problem stems largely from policies set by states and cities.
The report points to specific regulatory barriers that prevent builders from constructing housing efficiently and affordably. These include mandatory parking lot requirements for apartment buildings, height restrictions designed to limit shadows on streets, and environmental reviews that drag on for years. Each of these government-imposed rules prevents builders from bringing new units online in a cost-effective manner. New York City is singled out as "the model for how not to build housing," suffering from harmful policies including rent control and a tax credit specifically designed for builders who construct apartment buildings under 99 units.
According to the report, rents and mortgages "have ballooned in many areas due, in large part, to government-imposed barriers that make it nearly impossible to build." Aiello writes that a bipartisan housing bill currently moving through Congress "can make a difference, if done correctly," but argues "there are better ways to build more housing." The National Taxpayers Union's analysis frames the housing crisis as fundamentally a supply problem created by excessive regulation rather than a shortage of federal intervention.
The report's core argument is that deregulation at the state and local level—not new federal programs—offers the most direct path to affordable housing. By eliminating requirements like mandatory parking, relaxing height limits, and streamlining environmental reviews, cities could allow developers to build more units faster and cheaper. The New York City example illustrates how well-intentioned policies like rent control can backfire, restricting supply and driving up costs for everyone else. The tax credit favoring smaller buildings under 99 units similarly distorts the market, discouraging the larger-scale construction that could bring more affordable units online.
The takeaway is clear: if policymakers want to make housing more affordable, they need to focus less on what Washington can do and more on what state and local governments should stop doing. Reducing regulations and taxes that artificially restrict supply is the fastest route to bringing rents and home prices back down to earth.