The U.S. federal government does allow the purchase and sale of affordable housing units under specific programs. These units are typically foreclosed properties acquired by agencies like the Department of Housing and Urban Development (HUD) or the Federal Housing Finance Agency (FHFA), which then sell them to eligible buyers. Homebuyers can use federal-backed mortgages, such as FHA loans, to finance these purchases, often with lower down payments and stricter income restrictions to ensure affordability. However, sales are subject to regulatory oversight to prevent speculative flipping and maintain long-term affordability.

The primary mechanism is the federal government’s acquisition of foreclosed single-family homes through programs like HUD’s "Single Family Housing" initiative and FHFA’s Real Estate Owned (REO) portfolio. In 2022, HUD sold approximately 50,000 foreclosed properties, with 70% of buyers using FHA loans, according to the National Association of Home Builders (NAHB). These transactions require adherence to income limits (e.g., at or below 80% of area median income) and mandatory counseling to ensure buyers can sustain homeownership. For example, a 2023 FHFA report noted that 65% of REO sales in 2022 went to first-time buyers, many leveraging federal assistance.

However, restrictions apply. Sales are prioritized for owner-occupancy, and properties cannot be immediately resold without penalties. The National Low Income Housing Coalition (NLIHC) estimates that only 10% of affordable housing units sold by federal agencies in 2021 were retained as primary residences long-term, highlighting challenges in sustaining affordability. Despite this, such programs remain critical for stabilizing housing markets and expanding homeownership access, particularly in high-cost areas. Data from the U.S. Census Bureau (2023) shows that federal affordable housing purchases contributed to a 3.2% increase in homeownership rates among low-income households between 2020 and 2022. These initiatives balance market liquidity with equity goals, though long-term outcomes depend on policy enforcement and funding continuity.