The nature of the housing problem in the United States has changed over the years while the posed solutions have not. Today the U.S. has both a surplus of housing and a shortage–the housing space is not effectively distributed. This article suggests the magnitude of underutilization of our housing space and discusses the federal and local policies which encourage over‐consumption and discourage voluntary redistribution. Some pertinent recent Supreme Court decisions are discussed. Copyright © 1979, Wiley Blackwell. All rights reserved