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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?”
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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.
Homeownership slipping further out of reach
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.
But this affordability crisis isn’t limited to California. Home prices across the country have soared. Over the past five years, Redfin data show the median U.S. home price has surged by 48%.
Getting a piece of the real estate pie
Despite elevated prices, real estate remains one of the most sought-after assets — and for good reason. It’s a tangible, income-generating investment that has historically held its value during periods of inflation.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts with inflation.
Investing legend Warren Buffett has long pointed to real estate as a prime example of a productive, income-generating asset. In 2022, he famously said at an annual shareholders meeting that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”
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Why? Because no matter what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rental income.
The good news? You don’t need billions — or even the budget to buy a single property outright — to start investing in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is Homeshares, which gives accredited investors access to the $35 trillion U.S. home equity market — a space that’s historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
