A lack of adequate affordable housing has been on the Biden administration's task list for some time. The Economic Report of the President sent to Congress this month has an entire chapter on the topic, called Increasing the Supply of Affordable Housing. In that context, the White House suggesting something unusual — using tactics to affect local land-use regulations and zoning restrictions.

The chapter begins with some acknowledgments of the challenges to affordable housing, including that there is an estimated national shortage of 1.5 million to 3.8 million homes due to, in part, "land-use regulations and zoning restrictions that limit what can be built."

"While some land-use regulations can be a reasonable part of community planning—for example, keeping factories away from schools or ensuring that parks are situated near residential areas—many other building regulations—for example, limiting housing density and building heights, or imposing minimum lot sizes or parking requirements—can create artificial barriers that hinder growth and drive up the cost of housing," they wrote. "These policies arise naturally from a local decision making process that is influenced by homeowners, who prefer higher home prices, and account for the local costs of increased housing, such as more congestion, but they fail to account for any regional or national benefits. This classic market failure negatively affects individuals in neighboring communities and potential new residents."