Ellison Conrad
The American Dream was never a given, but rather something earned. It is the premise that with hard work and determination, you can achieve anything, and it is the center of the American ethos. It unites us in our love for the underdog, football, and family, affording people from all walks of life the opportunity to try their hand. For many today, a pillar of that Dream – owning a home – is slipping out of reach.
Homeownership and the family go hand in hand. Our parents and grandparents largely succeeded in attaining both of these ideals. They raised families and owned homes, working in jobs as varied as factory workers, electricians, nurses, small business owners, farmers, and more. Middle-class jobs that were often attainable at a young age gave our predecessors the opportunity to participate in the American Dream and the freedom that comes with it.
Now, young Americans are having trouble even leaving their parents’ homes. Record numbers of adult children currently live with their parents: almost 20% of males and over 10% of women between the ages of 25 and 34. Compare this to roughly 14% and 7% of the pre-2010 years. Birth rates have fallen in tandem, dropping from over 2 to 1.6 births per woman, as young Americans delay starting families they can’t afford to house.1https://www.cbsnews.com/news/trends-behind-historically-low-us-birth-rate-60-minutes/
You can imagine the confusion my generation feels, as we pursue the American Dream but see homeownership becoming less and less accessible. In our lifetime, entry-level home prices have risen 157% nationally, and 200% for Floridians. Yes, the entry-level home in America is now $280,000; but here in Florida, it’s $315,000.2https://www.aei.org/national-and-metro-housing-market-indicators/?gad_source=1&gad_campaignid=1724282639&gbraid=0AAAAADwVl0g This trend extends beyond entry-level homes; new construction and existing home prices overall have risen 88%3https://fred.stlouisfed.org/series/MSPNHSUSA and 137%4https://fred.stlouisfed.org/series/HOSMEDUSM052N respectively. Meanwhile, median income has only risen 12%.5https://www.govinfo.gov/content/pkg/ERP-2026/pdf/ERP-2026.pdf
The result: the average first-time homebuyer in America is now 40 years old, around 10 years older than the average just a few decades ago.6https://www.nar.realtor/newsroom/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40
A deferred start to homeownership aligns with other alarming trends among America’s younger generations. Faced with the prospect of never owning a home, young people are spending more instead of saving, and taking on riskier investments in search of wealth they can no longer build through homeownership.1 Perhaps not the most prudent tactic, but a very real trend nonetheless.
As we know, every river has its source. Here, the government-created “bureaucrat tax” is that headwater. A term coined in the most recent Economic Report of the President, the “bureaucrat tax” is the regulatory blockade of the housing supply. Where once the U.S. housing market was self-regulated, stable, and responsive to changes in demand, modern restrictions impede housing supply growth and lead to higher home prices.
This often stems from the fees and delays associated with increased laws and regulations surrounding land usage. Building codes, zoning applications, and compliance costs are major contributors to these higher home prices as well. New construction today takes longer and costs more for developers, who offset these costs by building less and charging more for what they do build. The result is a system where unnecessary regulation feeds development costs and disincentivizes construction. Less construction shifts demand to existing homes, which, with a stagnant supply, increases prices. It is a vicious cycle in which all homes, old and new, become further out of reach.
Recent legislation passed in Texas aims to mend the issue through more efficient zoning laws. House Bill 24 prevents the blocking of zoning changes during approval processes. Senate Bill 15 limits density restrictions of minimum lot sizes from 5,000 sqft to 3,000 sqft. This dual-faceted approach aims to target both housing quantity and pricing.7https://gov.texas.gov/news/post/governor-abbott-signs-laws-to-combat-statewide-housing-crisis-in-austin Florida residents may be familiar with our state’s proposed amendment to cut taxes on properties valued up to $250,000.8https://www.flsenate.gov/PublishedContent/Offices/President/6_2_26_Senate_Passes_Historic_Property_Tax_Cut_for_Florida_Homeowners.pdf This offers a downstream solution that addresses financial burdens after purchase.
With common-sense policy reform like fewer zoning restrictions, density regulations, and streamlined permitting, Florida can lead the way to restoring what should never have been lost. To the young American: rest assured, the Dream is not dead; just waiting on leaders to wake up and the policy to catch up.
Ellison Conrad is a policy intern at The James Madison Institute.
