Democrats Unveil Plan to Build 12 Million New Homes through Deregulation

Strategic Insights -

A growing movement among Democrats to focus on building more and reducing regulations has led to the proposal of a plan to construct 12 million new homes through deregulation, removing tariffs, and deploying the U.S. Army Corps of Engineers. The proposal, put forth by the center-left think tank Third Way, is a reflection of the "Abundance" movement, which urges Democrats to focus on building things if they want to win more elections. The plan's primary goal is to address the housing affordability crisis, which has drawn a backlash from the party's left wing. Third Way's senior vice president, Gabe Horwitz, argues that the party needs to build more homes to fundamentally change the supply of housing and lower prices in the country.

Key Takeaways:

  • The plan, titled "Homebuilder-in-Chief," aims to build 12 million new homes through deregulation and other measures.
  • The proposal has five major components, including leveraging federal grants to eliminate exclusionary zoning rules and eliminating tariffs on building materials.
  • The plan also includes declaring a housing emergency to deploy the National Guard and the Corps of Engineers to assist in building.
  • Third Way is trying to spur the policy debate heading into the 2028 elections.
  • The party's left wing has pushed back against the proposal, arguing that it is a rebrand of the corporate, deregulatory side of the party.
  • The "Abundance" movement, inspired by the bestselling book, has drawn a backlash among some in the party's left wing.
  • Zohran Mamdani, the Democratic nominee for mayor in New York City, proposed a plan to freeze the rent on rent-stabilized apartments, double the funds to preserve public housing, and build 200,000 new rent-stabilized units with union labor.

Statistics:

  • 12 million new homes slated for construction under the Third Way plan.
  • Five major components to the plan, including leveraging federal grants and eliminating tariffs.
  • 200,000 new rent-stabilized units proposed by Zohran Mamdani's plan.
  • 2,500,000 potential jobs created by the proposed construction of 12 million new homes.

Sources:

  • Axios: "First Look: Third Way Plan For Dems to Fight Back" (https://www.axios.com/2025/03/14/first-look-third-ways-plan-for-dems-to-fight-back)
  • Axios: "Abundance Movement Democrats Fight Back" (https://www.axios.com/2025/08/15/abundance-movement-democrats-fight-2028)
  • Third Way: "Homebuilder-in-Chief: A Plan to Build 12 Million New Homes" (https://www.thirdway.org/memo/homebuilder-in-chief-a-plan-to-build-12-million-new-homes)
  • Third Way: "The Five Tickets to the Middle Class" (https://www.thirdway.org/memo/the-five-tickets-to-the-middle-class)
  • Axios: "Zohran Mamdani: New York Democrats Wary" (https://www.axios.com/2025/07/21/zohran-mamdani-new-york-democrats-wary)