Abstract
Decades of diminishing federal leadership and support for affordable housing policy have opened up a gap in public response to housing needs. Filling this gap is critical if the long-held goal of decent (and affordable) housing for every American is to be honored and communities are to thrive. This article investigates state governments in an era of federal retreat by examining the factors associated with innovations in housing policy in California and New Jersey, two reputed leaders in state housing policy. We collected data through interviews with key informants, as well as from meetings, reports, public documents, agency records, and other secondary sources. Our analysis indicates that state innovations in housing policy are influenced by bureaucratic (internal) factors, such as funding and agency structure, and by environmental (external) factors, such as local autonomy and interest group activity. We conclude with the policy and research implications of our findings.