Government decisions, especially at the subnational level, have a significant impact on the affordability and quality of housing. As house prices have increased rapidly in most OECD countries over recent decades, housing has become less affordable for many households, pushing the issue to the forefront of the policy debate. Affordability and quality gaps are particularly severe among low-income households, private market renters and youth. Well-designed policy reforms at both national and local levels can promote more affordable, equitable housing markets. Subnational governments have major housing policy responsibilities including the provision of social housing, land use regulation and property taxation. Aligning national and local approaches is key to address housing equity challenges comprehensively. However, trade-offs exist between housing policy objectives like efficiency, sustainability and inclusiveness. Careful policy design and close co-ordination of national and subnational policies are essential to balance competing goals and facilitate the smooth functioning of inclusive and responsive housing markets.