Housing Crisis Impacting Middle Class Families

The current state of housing in our country poses significant challenges, particularly for the middle and working classes. A troubling trend has emerged where more than half of Gen Z adults express that the high cost of living is preventing them from achieving their desired lifestyle.

At various government levels, discussions are underway to address these issues. Interestingly, in 2025, Texas has taken notable steps—perhaps more than any other state—to make housing more affordable.

Interestingly, baby boomers are often associated with “Not in My Back Yard” (NIMBY) attitudes, which create barriers to essential solutions like constructing starter homes on smaller lots or allowing mixed-use development in urban areas. Yet, it’s worth noting that baby boomers themselves benefited from the increase in starter homes that followed World War II.

Back in 1946, there were over a million housing starts, and this number only grew, reaching nearly two million by 1950. At that time, the typical single-family home was about 1,350 square feet—ample space for a three-bedroom layout—situated on lots averaging 8,700 square feet.

Now, thanks to NIMBY policies, the availability of affordable housing for baby boomers is quite restricted. A recent study covering nearly 11 million new homes shows that the median size of a single-family home has surged to 2,300 square feet, requiring significantly larger lots, which, in turn, drives up costs. Building smaller homes on smaller lots has become largely impractical.

It’s an intriguing notion: if the median single-family home lots and living areas were closer to 5,500 and 1,960 square feet, then around 10 million additional family homes could have been constructed using the same land. This could also mean homes would be priced approximately 15% lower. Further research suggests that builders would indeed construct more starter homes if given more flexibility.

Interestingly, there’s a pervasive myth suggesting that smaller lots and lower densities devalue property. Additionally, the idea that these homes would burden city infrastructures isn’t holding up under scrutiny. This has been debunked repeatedly.

An organization advocating for responsible housing solutions successfully rallied a substantial grassroots coalition to emphasize the need for legislative changes in Texas to avoid the housing pitfalls experienced in California. They found that allowing housing development on commercial land, along with smaller starter homes, was critical. Recently passed Texas Senate Bill 15 promotes lot size flexibility for new housing projects in large cities.

In Houston, similar legislative changes led to the construction of single-family townhomes on smaller lots, which are significantly more affordable than traditional single-family homes. For instance, these townhomes averaged $340,000, compared to $545,000 for other new homes in the area.

There’s also another positive development on the horizon from Texas: Senate Bill 840, which allows for residential building in commercial zones. Research indicates that increasing the housing supply can lead to a decrease in surrounding rents by a substantial margin.

Treasury Secretary Scott Bessent recently remarked on the “blue collar boom,” yet emphasized the importance of states adopting similar strategies that Texas has taken, rather than direct intervention.

To illustrate, consider Hyundai’s new factory to be built in Elabelle, Georgia. Most homes in the vicinity are single-family residences, creating a deficit in affordable housing near employment opportunities. A household who purchased a home around Savannah had an income of $76,000 and bought a home valued at $313,000. Yet, with new single-family homes accounting for a whopping 86% of all homes built in the metro area, affordability remains a pressing concern.

The current focus on starter housing on smaller lots seems crucial for supporting production workers and future generations.

Perhaps it’s time for the baby boomers to reconsider their stances and provide solutions for where their children and grandchildren will live.