There is broad agreement that affordable housing is one of the most pressing problems facing the Commonwealth. Attracting a qualified labor force to the state is challenging, since housing prices are high and rising quickly. One important aspect of increasing the supply of housing in Massachusetts is the role played by municipal governments. In a sense, all housing development decisions in the state start at the municipal level. Many municipalities are reluctant to approve significant new housing projects because of their fear that the costs generated by new housing will outstrip the tax revenues generated. In fact, the relationship between costs and revenues is not so clear-cut and deserves more consideration.