Government Overreach Crushed the American Dream as Starter Homes Hit $1 Million

Homeownership, the cornerstone of the American Dream, is fading fast for millions of young families. Zillow's latest data delivers a gut-wrenching reality: in 233 U.S. cities, a typical starter home now costs $1 million or more. Five years ago, only 85 cities carried such a punishing price tag. The national median starter home price sits at $192,514, but in high-cost regions, that figure is a cruel mirage. For aspiring buyers, particularly millennials and Gen Z, the path to owning a home feels like chasing a shadow in a storm.

This isn't just a market quirk; it's a policy failure of epic proportions. While the median age of renters has climbed to 42, young adults are forced to delay family milestones, trapped in a cycle of rising rents and dwindling hope. The surge in million-dollar starter homes, concentrated in states like California and New York, reflects a housing market warped by decades of overregulation and government meddling. The result? A generation locked out of wealth-building, with economic inequality widening by the day.

Advocates for heavy-handed federal housing programs argue that more subsidies or public housing will fix this mess. They’re dead wrong. Throwing taxpayer dollars at the problem only inflates costs further, distorts markets, and fosters dependency. The real solution lies in unleashing the free market, slashing restrictive zoning laws, and letting builders meet demand. Conservatives understand that property rights and local control, not Washington’s iron fist, hold the key to affordability.

The stakes couldn’t be higher. Homeownership isn’t just about a house; it’s about stability, community, and the chance to build generational wealth. When starter homes cost seven figures, the American Dream becomes a privilege for the elite, not a promise for the hardworking. It’s time to confront the root causes and fight for a future where young families can plant roots.

The housing crisis boils down to one word: supply. Restrictive zoning laws, often championed by local governments under pressure from wealthy homeowners, choke off new construction. In California, which accounts for 113 of the 233 million-dollar starter home cities, regulations like single-family zoning and minimum lot sizes make it nearly impossible to build affordable homes. These rules, rooted in Progressive Era urban planning, prioritize aesthetics and property values for the few over the needs of the many.

Conservative thinkers, like those at the Heritage Foundation, have long warned that excessive regulation drives up housing costs. Their Project 2025 blueprint nails it: government barriers account for a massive chunk of new home prices. Deregulating land use would unleash builders to meet demand, driving down costs through competition. Yet, local governments, even in conservative strongholds, cling to zoning rules that protect entrenched interests. This hypocrisy must end. If we value homeownership, localities need to face the consequences of their restrictive policies.

Contrast this with the approach of federal housing advocates, who push for bloated subsidies like the Low-Income Housing Tax Credit. With over 100 bipartisan cosponsors, the Affordable Housing Credit Improvement Act of 2025 promises to finance thousands of rental units. Sounds noble, but it’s a Band-Aid on a broken system. Subsidies don’t address the supply shortage; they just shift costs to taxpayers while inflating prices in already strained markets. Worse, they often fuel bureaucracy and dependency, not self-reliance.

Skyrocketing starter home prices don’t just hurt wallets; they deepen economic divides. Homeownership has long been the engine of wealth-building in America, but as prices soar, only the already-wealthy can climb aboard. Between 1984 and 2021, the median wealth gap between white and Black households ballooned by nearly $70,000, with housing appreciation accounting for $50,000 of that increase. White homeownership stands at 74%, while Black households lag at 43%. Existing homeowners reap the rewards of rising values, while renters, often younger and minority families, are left behind.

This isn’t a call for more government handouts, as some policymakers demand. Federal programs that pour money into housing often distort markets and favor connected developers over struggling families. The real fix is increasing supply to make homes attainable for all. By cutting red tape and letting builders respond to demand, we can create a market where hard work, not inherited wealth, determines who gets a shot at ownership. Anything less perpetuates a system that rewards the haves and punishes the have-nots.

For decades, federal housing policies have promised affordability but delivered bureaucracy. New Deal-era public housing projects, once hailed as progressive triumphs, often became symbols of mismanagement and decay. Today’s push for more subsidies and zoning mandates repeats the same mistakes. The National Low Income Housing Coalition’s 2025 Gap report highlights a shortage of 7.1 million affordable rentals, and their solution is predictable: more government spending. But pouring money into a broken system only props up inefficiencies and inflates costs.

Conservatives reject this top-down approach. Property rights and market freedom, not federal overreach, drive real solutions. Local governments must be free to innovate, but they also need to stop hiding behind zoning laws that protect wealthy enclaves. The tension between local control and deregulation is real, but the answer isn’t Washington stepping in to dictate terms. It’s about empowering communities to prioritize supply while holding them accountable for policies that price out families.

The housing crisis demands bold action, and conservatives have the roadmap. First, slash restrictive zoning laws that block new construction. States like Texas and Florida, with their booming Sun Belt markets, show what’s possible when regulations don’t strangle supply. Second, incentivize private development through tax breaks and streamlined permitting, not taxpayer-funded subsidies. Finally, protect property rights while ensuring local governments don’t abuse zoning to exclude new residents. This approach respects communities and unleashes the market to deliver homes families can afford.

Young adults, facing a median home price of $420,400 on salaries that support just $110,928, deserve better than lifelong renting. The psychological toll of this crisis, from delayed families to financial insecurity, is tearing at the fabric of our society. Homeownership isn’t just a transaction; it’s a stake in the future. By embracing deregulation and market-driven solutions, we can restore that opportunity for the next generation.

The surge in million-dollar starter homes is a wake-up call. In 233 cities, the American Dream is slipping out of reach, not because of market failure but because of government overreach. Zoning laws, federal subsidies, and local protectionism have created a housing market that serves the elite while sidelining the aspiring. Conservatives have the vision to fix this: less regulation, more supply, and a renewed commitment to property rights and local accountability.

Young families aren’t asking for handouts; they’re asking for a fair shot. By dismantling the barriers that inflate costs and restrict supply, we can make homeownership attainable again. The alternative, a future of skyrocketing rents and fading dreams, is unacceptable. Let’s fight for a housing market that rewards hard work, builds wealth, and keeps the promise of the American Dream alive.