"In a time of political divide, let’s start where we agree: housing."
Housing isn’t just a political issue; it’s a human issue. After food, housing is the most essential human need—it’s where we build our lives, our families, and our communities. Yet in America, we’ve made it harder than ever to achieve this basic necessity.
Across the political spectrum, one thing is clear: the housing system is broken. The right argues there’s too much regulation, while the left believes we have the wrong kind of regulation. But beyond these differences, both sides share a frustration: housing has become unaffordable for millions of Americans, and it’s not by accident.
The Divide (and Agreement): Elon Musk vs. Prof. Scott Galloway
On the most-viewed TED Talk of 2024, Prof. Scott Galloway made a bold claim:
“This isn’t by accident. It’s purposeful. Once you own a home, you become very concerned with traffic and ensure there are no new housing permits.”
Galloway highlights how restrictive zoning and homeowners’ lobbying protect their investments while freezing out younger generations from the market. In his view, housing scarcity is by design, benefiting the wealthy at the expense of younger generations like Millennials and Gen Z.
Elon Musk, from a different angle, agrees that regulation is the culprit:
“The thing that’s driving up housing costs is the crazy overregulation. It’s so hard to build new houses. These regulations stifle new housing creation. If we can alleviate the crazy number of regulations for houses, the cost of a new house should fall dramatically.”
While Galloway focuses on how homeowners manipulate the system, Musk emphasizes how regulators block innovation. These perspectives may differ, but the frustration is the same: housing costs are spiraling out of control because the system is stacked against new development.
A Few Data Points to Paint the Picture
- Housing Costs: The median home price in the U.S. is now over $416,000 (as of 2024, according to the National Association of Realtors), while the median household income is only $74,580 (U.S. Census Bureau). This is a massive disconnect.
- Zoning Problems: Over 75% of residential land in U.S. cities is zoned exclusively for single-family homes, according to the Urban Institute. This severely limits the types of homes that can be built, contributing to housing shortages.
- Building Time: It takes an average of 7.5 years to get approval and build a housing project in cities like San Francisco, according to a 2023 report by the Terner Center for Housing Innovation.
Five Actions to Solve the Housing Crisis
1. Federalize Zoning Standards
Local zoning laws are a labyrinth of restrictions that prevent affordable and diverse housing options. For example, some counties require a minimum home size of 1,350 sq. ft., excluding those who want smaller, more affordable homes.
A federal standard for zoning laws would allow smaller families, minimalists, and modern lifestyles to thrive. It would also prevent wealthy neighborhoods from using zoning to block new residents and maintain exclusivity.
2. Create a National Zoning Database
Trying to build a prefab tiny home or container home? You’ll spend months deciphering inconsistent zoning rules across counties and towns. Most are hidden behind confusing legal jargon that makes it impossible for the average person to understand.
A centralized, searchable database of zoning laws would eliminate this confusion. Imagine being able to search, “Where can I build a container home?” in seconds. This transparency would empower people to find affordable land and housing opportunities faster.
3. Streamline Building Approvals Nationwide
In some areas, getting a permit to build takes years. These delays increase costs, discourage new projects, and hurt buyers.
A national standard for building approvals would speed up the process while maintaining safety regulations. Cutting through red tape would allow housing to be built more quickly and at a lower cost.
4. Radical Reform: Build Homes Like Cars
We need radical reform in how homes are built. As long as houses aren’t constructed on assembly lines like cars, we will continue to see cycles of scarcity and unaffordability. Prefabricated homes, container homes, and modular housing can be mass-produced efficiently, reducing costs while meeting modern needs.
When housing supply grows at the pace of demand, home prices will balance with median household income, solving the affordability crisis. This isn’t just about innovation; it’s about breaking free from outdated, inefficient construction methods.
5. Reform Property Tax Incentives
Property taxes often favor luxury developments over affordable housing. Developers of high-end properties are rewarded, while builders of smaller, more sustainable homes are penalized.
We need property tax reforms that reward developers for creating affordable, eco-friendly housing. This would redirect investment into projects that benefit the majority rather than the wealthy few.
A Once-in-a-Lifetime Opportunity
With remote work reshaping where and how we live, Millennials and Gen Z have a chance to rewrite the housing narrative. There are over 1 million parcels of land for sale under $1,000 across the U.S. (sources: LandSearch, LandWatch, and LandHub). Combine that with innovative housing solutions like container homes, and a mortgage-free lifestyle is within reach.
It’s time to stop transferring wealth to homeowners via rent in a system designed to make them rich at your expense. The housing crisis isn’t an accident, but together, we can fix it.
The Dinner Table Conversation
So, this holiday season, bring this to the family dinner table. Discuss the points where we agree: housing is broken, and we need change. Whether you’re inspired by @ElonMusk’s call to cut regulations or @ProfGalloway’s exposé of the purposeful design behind housing scarcity, let’s focus on solutions.
Because no matter where you stand politically, we all want the same thing: affordable, safe, and secure housing for everyone.
