The Vanishing American ‘Starter Home’

Rising land costs, expensive materials, and onerous building and lot size requirements are making it harder to build small, affordable ‘starter homes’ in the United States.

2 minute read

September 28, 2022, 11:00 AM PDT

By Diana Ionescu @aworkoffiction


First-Time Buyers

rSnapshotPhotos / Shutterstock

For decades, the American Dream of homeownership rested on the concept of the ‘starter home:’ a simple, affordable, single-family house theoretically within financial reach of young people and families just starting out. But as Emily Badger writes in the New York Times, that path is increasingly closed off to most American households.

The nation has a deepening shortage of housing. But, more specifically, there isn’t enough of this housing: small, no-frills homes that would give a family new to the country or a young couple with student debt a foothold to build equity.

The rise in the cost of homes is due to a variety of factors, Badger continues. “Land costs have risen steeply in booming parts of the country. Construction materials and government fees have become more expensive. And communities nationwide are far more prescriptive today than decades ago about what housing should look like and how big it must be.” In some cases, requirements mandated by local ordinances raise the cost of construction.

Today, many builders say it’s becoming impossible to build small, low-cost homes on increasingly expensive land. Solutions include permitting the construction of more than one housing unit on a parcel and encouraging a variety of housing types such as townhomes, bungalows, and other ‘missing middle’ housing. “In the early 20th century, communities were effectively using all kinds of models to solve for affordable, entry-level housing. But the arrival of the car enabled people to move further out, and new planning ideas declared what would be built there.” With the midcentury suburban model growing more and more unsustainable, the future may well involve looking to the past.

Sunday, September 25, 2022 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business