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Affordability is a major concern for Americans today, and the largest expenditure for Americans is housing. In order to bring down the cost of housing, both the federal government and other states are making once-in-a generation reforms. Here in New Mexico, we can also take action. The state has an important role in incentivizing and supporting local governments to get more homes built faster.

New Mexico鈥檚 housing shortage is large and growing. A gap of 58,000 homes statewide makes our affordability problem worse. From 2015 to 2025, statewide rents rose 48% and home values increased by 85%. In job-rich communities where new homes are most needed, permitting processes are often the most difficult, blocking families from living near their jobs.

To better understand how these housing permitting systems might be improved, Homewise partnered with the Mercatus Center to interview a wide range of practitioners and housing experts across New Mexico and wrote a report titled 鈥淗ow to Streamline Housing Permitting in New Mexico.鈥�

Our findings revealed that a wide range of red tape slows housing construction and adds costs. And it's not just a local problem. The state of New Mexico is the only state in the Southwest that has not adopted state-level housing reforms in recent years.

Within local governments, there is wide variance amongst housing permitting systems. Some are faster and more effective than others. In recent years, several communities, such as Las Cruces, Rio Rancho, Albuquerque, Silver City and Farmington, are leading the way by adopting or expanding by-right administrative approval processes for housing. This sets a fair process by which staff approve projects in accordance with housing regulations adopted by elected officials. This saves time, builds housing and sets a level playing field for all.

But how do we grow this momentum? Our report has some ideas.

First, improving housing permitting is never a silver bullet 鈥� it's more like a recipe where the spices have to be in balance. Local and state governments have to dial in many policies and processes based on their local circumstances. Therefore, our report includes a wide range of permit and land use reform best practices that can suit the various needs of rural and urban communities.

Second, we found that a key ingredient is the presence of a pro-housing culture in local government. Our report includes examples of local and state agencies, such as the city of Las Cruces and the State Construction Industries Division, that are setting ambitious housing goals and tracking their performance.

Additionally, the report outlines how the state of New Mexico can incentivize and support housing permitting excellence. There are a number of near-term actions that the state can take. We found that local governments and the wider housing community often lack the data, incentives, infrastructure funding and intergovernmental partnerships that have shown success in other states. Therefore, our report recommends three initiatives by the state Legislature: 

1. Develop incentive programs for local governments to opt-in to best practices and peer learning. 

2. Adopt reforms to existing state statutes that limit local innovation in zoning and permitting. 

3. Create of a Division of Housing within a state agency. New Mexico currently lacks a state entity responsible for coordinating housing policy and helping communities address barriers to housing. This is critical to get more housing built and more people into homes faster.

With renewed effort at the state and local level, the recent progress in many communities can be replicated across the state, and we can provide housing for every New Mexican. Read the report here: .

Johanna Gilligan is president of Homewise. Salim Furth is a senior research fellow and director of the Urbanity project at the Mercatus Center at George Mason University.