By Ryan Kilpatrick

In countless ways, those with economic power today are undermining the potential of future generations. The housing market is perhaps the most tangible example of this generational inequity.

The Numbers Tell the Story

For more than two decades, communities across the United States have consistently underproduced housing relative to the number of new households formed. This isn't just a big-city problem—it's happening everywhere, even in places with stagnant or declining populations.

Consider this stark statistic: In the 1980s, more than 40% of new homes constructed were under 1,400 square feet and designed for first-time homebuyers. Fast forward to 2022, and fewer than 7% of new homes target similar buyers.

Why does this matter? Because household growth isn't strictly tied to population growth. A single family of four living in one home can quickly transform into three separate households when adult children move out to start their own lives.

Meet Taylor: A Reality Check

Taylor recently graduated from college and landed her first professional job with a salary of $48,000—not bad for an entry-level position. The job is located two hours from her hometown, so she needs to relocate.

What she discovers is troubling: this new community hasn't built a single apartment or starter home in the last 20 years. Everything that exists is already occupied, with no vacancies in sight.

What Taylor doesn't immediately realize is that she's not alone in her search. The local chamber of commerce has documented stories from more than a dozen employers trying to replace retiring workers, all facing the same problem—there's nowhere for these new employees to live.

When something finally does become available, Taylor finds herself in a bidding war with dozens of other hopeful renters or buyers, driving prices far beyond what anyone had initially expected to pay.

"Just Let the Market Solve It"

Some might argue, "If demand is truly that high, builders and developers would seize the opportunity to make money by constructing new housing. The market would naturally respond with more homes."

If only it were that simple.

The reality is that most communities don't permit the types of housing that are actually in demand. What they do allow is plenty of single-family homes on large lots—properties that typically cost $400,000 or more to build.

Land across the country is made artificially expensive by “local zoning and land use regulations that dictate home sizes, yard sizes, parking and more, while giving politicians and residents an effective veto over anything that might deviate from these strict terms.” These policies create, in effect, a “zoning tax” on residential land of potentially hundreds of thousands of dollars—dollars that are initially paid by the companies that build new housing, but eventually passed on directly to the consumer.

The monthly payment for a $400,000 house (including taxes and insurance) runs about $3,000. For someone like Taylor making $4,000 per month before taxes, that would consume 75% of her gross income—an impossible financial burden for someone just starting their career with minimal savings.

What We Really Need

Young professionals need options: apartments, townhomes, one-bedroom condos, and small cottages that offer reasonably sized and reasonably priced housing as they enter the workforce—especially as America experiences the "silver tsunami" of mass retirements.

Creating these options requires local communities to make them legal to build—and not just in token areas that create new bidding wars over the handful of appropriately zoned properties.

Instead, we need "by-right" zoning that allows:

• Duplexes or backyard cottages on any lot in any community
• Small apartment buildings on any lot within 500 feet of a commercial district
  
  

No special processes. No labyrinth of 62 specialized conditions to navigate for a permit. No traffic studies or six month assessments. No burdensome parking requirements layered on top of unrealistic lot sizes and set backs. Just walk into the planning department with a decent set of plans, receive approvals, and start building.

The Bigger Picture

This isn't just about hosing—it's about creating communities where multiple generations can thrive. It's aboucknoledging that the traditional housing path that worked for previous generations simply isn't viable for many young Americans today.

Current zoning is designed as an attempt to freeze a community in amber. Something that might sound nice for a little while but is practically impossible. People change, they get older, they more money (and later much less), their families grow up, move out, and they need flexible and diverse options to accommodate all of these changes. Neighborhoods should be resilient enough to offer a multitude of options and still maintain their local sense of place.

Until we address these fundamental zoning issues, we're effectively telling an entire generation: "There's no place for you to begin."

The question is: Are we willing to make the simple changes necessary to create that place for the up-and-comers?