On June 15, 2017, it was announced that Housley was hired by the Buffalo Sabres as their new head coach. He led the Sabres to a 31st-place finish in his first season and saw the Sabres attain a 10-game winning streak early in his second season before the team collapsed down the stretch. Housley was fired by the Sabres after the 2018–19 season on April 7, 2019. On June 26, 2019, it was announced that Housley signed a multi-year contract as assistant coach for the Arizona Coyotes. For the Coyotes, Housley serves as defensive coordinator and power play coach. Housley grew up in South St. Paul, Minnesota. He is married to his high school sweetheart, Karin Housley, a Minnesota state senator and Republican nominee for the 2018 special election for United States Senate in Minnesota. The Housleys have four grown children and reside in St. Marys Point, Minnesota.