State Trust Lands Offer Opportunity for Affordable Housing

Western states that hold millions of acres in land trusts are working to turn some of them into affordable housing.

2 minute read

October 31, 2023, 12:00 PM PDT

By Diana Ionescu @aworkoffiction


White, yellow, gray boxy apartment building with construction fence surrounding bottom floor in Albuquerque, New Mexico.

Luminaria Apartments, a senior affordable housing development built on state trust land in Albuquerque, New Mexico. | The New Mexico State Land Office / Luminaria Apartments

As the affordable housing crisis grows, states in the Western U.S. are looking to underutilized state-owned lands as potential sites for new housing development, reports Alex Brown in Stateline.

Many of the properties in question were granted to states as “working lands” designed to fund public schools and community services by “leasing them for activities such as logging, mining, grazing and oil and gas development,” and, more recently, renewable energy farms, campgrounds, and other uses.

The process has its own unique challenges. “State land agencies often lack the expertise to develop land themselves, and requirements that they sell parcels for market rates often mean affordable projects are priced out. Officials are still figuring out which mechanisms — leases, land exchanges with local governments, auctions to developers — might work best for getting housing built.” While much of this land isn’t suitable for housing, and some protects critical habitats or other sensitive environments, state leaders see it as an opportunity to diversify their revenue streams and build much-needed housing by making it easier to build on sites near current development.

In Colorado, a new Public-Private Partnership Collaboration Unit formed by the state will support building housing on state-owned land through financing and technical assistance. “Utah has begun looking at ways to promote affordable housing on trust lands, including working with local governments to enact zoning changes that allow increased density.” In New Mexico, an affordable senior housing facility built on trust land opened last year.

Thursday, October 26, 2023 in Stateline

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

Blue and white Seattle Link light rail train exiting concrete Downtown Bellevue Tunnel in Bellevue, WA.

Why Should We Subsidize Public Transportation?

Many public transit agencies face financial stress due to rising costs, declining fare revenue, and declining subsidies. Transit advocates must provide a strong business case for increasing public transit funding.

April 7, 2025 - Todd Litman

A line of white wind turbines surrounded by wheat and soybean fields with a cloudy blue sky in the background.

Wind Energy on the Rise Despite Federal Policy Reversal

The Trump administration is revoking federal support for renewable energy, but demand for new projects continues unabated.

April 15 - Fast Company

Red and white Caltrain train.

Passengers Flock to Caltrain After Electrification

The new electric trains are running faster and more reliably, leading to strong ridership growth on the Bay Area rail system.

April 15 - Office of Governor Gavin Newsom

View up at brick Catholic church towers and modern high-rise buildings.

Texas Churches Rally Behind ‘Yes in God’s Back Yard’ Legislation

Religious leaders want the state to reduce zoning regulations to streamline leasing church-owned land to housing developers.

April 15 - NBC Dallas