We have all heard the “American Dream” of a white-picket-fenced yard surrounding our 1,600 sf brick 3 bedroom 2 bath home with a deck and big backyard. That sounds amazing in 1980 when that dream cost around $55,000. With the average income of that era you could easily qualify for a 30-year mortgage and still take a family vacation. As we move into 2026 that same home will cost around $500,000 if you can even find one for sale. With the median income in 2026 for a family the stretch mortgage is in the range of $350,000. As a result a townhouse has become the new “starter home” and even that can be a stretch as demand outpaces construction. With short supply and high demand for home ownership, we are seeing the average age of a first time home buyer go up from 1980 when it was 29 to today where the average is 40.
As we see the demand for townhouses to fill the void for first time home buyers, we are also seeing a growing demand for luxury townhouse solutions. Families are making these communities that now offer clubhouses, community pools, landscape maintenance, playgrounds, and dog parks their lifetime homes. In 2025 townhouse construction hit a record market share of over 18% of all single-family home starts.
Is there a better way?
Another approach that is emerging in many communities is multi-generational dream homes, accessory dwelling units, and tiny houses. Each of these bring flexibility to the dream. The ADU backyard movement provides diversity of housing in a community at a lower price point. It can be used as an ADA compliant unit or a secondary income to support a higher mortgage. The tiny home enables a lower price point for purchase of a home with the option to do an addition in the future if needed. We are working on multiple projects that fall into each of these categories.
The new American Dream builds a stronger future
The new American Dream often brings a higher level of design than the 1980 brick ranch adding style, durability, energy-efficiency, and indoor environmental quality as driving factors. The new dream brings families together, builds stronger communities, and deepens a focus on quality over quantity. I am excited to see the future we are shaping with these innovative project types.
