As housing affordability continues to challenge communities nationwide, a growing body of evidence shows that re-legalizing starter homes—small, modestly priced houses—can significantly reduce housing costs and expand access to homeownership.
In a recent 2-part series, Greater Greater Washington’s Payton Chung outlined not just how constructing more starter homes can bring down prices in theory, but also how several U.S. cities have done it in practice.
The concept is simple: allow developers to build more, smaller homes on subdivided lots. This “missing middle” housing includes duplexes, townhomes, and cottages that cost less to build and buy. When zoning laws permit this kind of density, builders can “make it up on volume”—selling more units at lower prices while maintaining profitability.
Cities like Portland, Oregon and Durham, North Carolina have embraced zoning reforms that eliminate minimum lot sizes and allow for smaller homes. The results are striking: in Portland, new middle housing units sell for $250,000 to $300,000 less than traditional single-family homes. Builders report strong demand and healthy profit margins, even with lower prices.
Starter homes used to be a staple of American neighborhoods. Re-legalizing them is a practical, proven way to bring them back—and make housing more attainable for everyone.
Unfortunately for Maryland, the vast majority of existing neighborhoods and available land are off-limits to small lots and small houses under current local zoning regulations. Whether that changes will be up to the will of policymakers.
Chung concludes the series by stating the obvious: “Instead of listening to a handful of “supply skeptics” who refuse to believe that homebuilders will sell less land for less money, our local governments should make better choices and legalize more housing choices in more neighborhoods.”
Read more in Greater Greater Washington’s 2-Part Series on starter homes: