Jing Pan

Sat, Jun 21, 2025, 8:11 AM5 min read

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

Owning a home has become increasingly out of reach for many Americans — especially in California. Now, the federal government is proposing a bold, controversial fix: selling off its own land.

As part of President Donald Trump’s proposed “Big, Beautiful Bill,” the U.S. government is considering selling more than 16 million acres of federal land in California for housing development. Nationwide, The Wilderness Society says the bill would put more than 250 million acres of public land up for sale.

Housing affordability has long been a challenge in the U.S. and many experts blame a fundamental shortage of supply.

Federal Reserve Chair Jerome Powell underscored this last year at a press conference, stating, “The real issue with housing is that we have had and are on track to continue to have, not enough housing.” He also pointed to the difficulty of finding and zoning land in desirable areas, asking, “Where are we going to get the supply?”

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how

• BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis

• Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)

A recent Realtor.com analysis indicates a shortfall of 3.8 million homes in America's housing supply.

Selling federal land to build homes might ease that shortage — but not everyone is on board.

“The thought of the sale of public lands is pretty un-American,” Katie Hawkins, California program director for the nonprofit coalition Outdoor Alliance, told CBS News Sacramento.

Even a Republican lawmaker is sounding the alarm.

"It is so important that any decisions made regarding the acquisition or disposition of these lands be made only after significant and meaningful local input," Rep. Kevin Kiley (R-CA) recently told Congress.

California has long been notorious for its sky-high cost of living — and housing is a major reason for that.

According to data from real estate brokerage Redfin, the median sale price of a home in the U.S. was $441,738 in May 2025. In California, that figure jumped to $859,100 — nearly double the national median.

That kind of price tag puts homeownership out of reach for many residents. A recent study found that U.S. buyers need an annual income of $213,447 to afford a typical home in the Golden State.