This Chapter discusses ways of replacing the costly government intervention in the Danish housing market with more market-based mechanisms thereby achieving policy objectives in a more efficient and targeted way. The Chapter begins by describing the institutional features of the housing sector, followed by an assessment of overall subsidisation of housing through direct public expenditures and indirect tax subsidies. This includes a discussion of ways to free resources on public budgets for other purposes that are more central to maintaining the welfare state in an ageing society. The Chapter then reviews the rent regulation framework for private and social rented housing and discusses how to provide more flexibility. The final part reviews owner-occupied housing, particularly how the zoning regulations and municipal incentives could be improved to allow for a more responsive housing supply. It also reviews innovative developments in mortgage financing.