Wednesday, August 5, 2026
Group urges zoning reforms to revive starter homes across US
A new report released in San Diego by Casita Coalition says restrictive zoning and development rules have all but eliminated starter homes, and outlines policy changes aimed at making homeownership more attainable for first-time buyers.
A new report released Wednesday by Casita Coalition argues that state and local governments can help revive the nation's shrinking supply of starter homes through zoning reforms, streamlined regulations and expanded homeownership options.
The report, Starter Home Strategies, was developed with the Mercatus Center and identifies seven policy changes designed to make smaller, more affordable homes easier and less costly to build.
The nonprofit unveiled the report in San Diego, citing the city's efforts to expand housing options through reforms that allow eligible accessory dwelling units, or ADUs, to be sold separately from primary homes.
The report also points to San Diego's ongoing Neighborhood Homes for All of Us initiative, which would permit more townhomes, duplexes and cottage-style housing in areas now limited to single-family homes.
According to the report, starter homes have become increasingly rare. Only 9% of new single-family detached homes built in the United States in 2024 measured less than 1,400 square feet, down from 40% in 1982.
The report also found about 75% of U.S. households cannot afford the nation's median-priced home. In California, that figure rises to 85%.
Casita Coalition said the decline in starter homes is driven by more than rising construction costs. The report cites restrictive zoning, subdivision rules, parking requirements, impact fees, financing hurdles and lengthy permitting processes as barriers that make smaller homes financially difficult to build. Because many development costs remain the same regardless of a home's size, builders often opt to construct larger, higher-priced houses, the report said.
"We are proud to champion diverse housing solutions that can be tailored to each state's laws, land market and housing needs," Casita Coalition CEO Noerena Limon said in a statement.
San Diego Mayor Todd Gloria said the city has worked to remove barriers to building a wider variety of housing types.
"Starter homes, townhomes, ADUs and other types of housing can create more attainable pathways to homeownership for working families and first-time buyers," Gloria said in a statement. "We need to give the next generation of San Diegans a real opportunity to own a home, build wealth and put down roots here."
The report expands the traditional definition of a starter home beyond small, detached houses to include townhomes, duplexes, cottage courts, manufactured and modular housing, small-lot homes, separately owned ADUs, and shared ownership models.
Casita Coalition said communities across the nation have successfully used combinations of these approaches to lower housing costs and expand homeownership opportunities, providing examples that policymakers can adapt to local conditions.
The report, Starter Home Strategies, was developed with the Mercatus Center and identifies seven policy changes designed to make smaller, more affordable homes easier and less costly to build.
The nonprofit unveiled the report in San Diego, citing the city's efforts to expand housing options through reforms that allow eligible accessory dwelling units, or ADUs, to be sold separately from primary homes.
The report also points to San Diego's ongoing Neighborhood Homes for All of Us initiative, which would permit more townhomes, duplexes and cottage-style housing in areas now limited to single-family homes.
According to the report, starter homes have become increasingly rare. Only 9% of new single-family detached homes built in the United States in 2024 measured less than 1,400 square feet, down from 40% in 1982.
The report also found about 75% of U.S. households cannot afford the nation's median-priced home. In California, that figure rises to 85%.
Casita Coalition said the decline in starter homes is driven by more than rising construction costs. The report cites restrictive zoning, subdivision rules, parking requirements, impact fees, financing hurdles and lengthy permitting processes as barriers that make smaller homes financially difficult to build. Because many development costs remain the same regardless of a home's size, builders often opt to construct larger, higher-priced houses, the report said.
"We are proud to champion diverse housing solutions that can be tailored to each state's laws, land market and housing needs," Casita Coalition CEO Noerena Limon said in a statement.
San Diego Mayor Todd Gloria said the city has worked to remove barriers to building a wider variety of housing types.
"Starter homes, townhomes, ADUs and other types of housing can create more attainable pathways to homeownership for working families and first-time buyers," Gloria said in a statement. "We need to give the next generation of San Diegans a real opportunity to own a home, build wealth and put down roots here."
The report expands the traditional definition of a starter home beyond small, detached houses to include townhomes, duplexes, cottage courts, manufactured and modular housing, small-lot homes, separately owned ADUs, and shared ownership models.
Casita Coalition said communities across the nation have successfully used combinations of these approaches to lower housing costs and expand homeownership opportunities, providing examples that policymakers can adapt to local conditions.
