The federal government spends over $70 billion annually on housing subsidies and programs — yet housing has become less affordable, not more. From FHA loans and GSE guarantees (Fannie Mae, Freddie Mac) that inflate demand without increasing supply, to the mortgage interest deduction that disproportionately benefits high-income homeowners, to Section 8 vouchers and LIHTC tax credits that create bureaucratic complexity without solving root causes — our analysis examines how well-intentioned housing policies produce unintended consequences. Grounded in free-market economics and the work of Friedman, Sowell, and Hayek.