Casita Coalition Roadmap Aims to Revive Vanishing Starter Homes

The "Starter Home Strategies" report, produced alongside the Mercatus Center, identifies seven specific reforms designed to dismantle the regulatory barriers currently stifling middle-scale construction. These hurdles—ranging from rigid parking mandates and complex subdivision rules to excessive impact fees—often force builders to prioritize larger, high-profit properties, leaving first-time buyers with few options. The coalition argues that by tackling these fixed costs and zoning restrictions, local governments can restore a segment of the market that has all but disappeared.

San Diego serves as the primary case study for this initiative. Under the "Neighborhood Homes for All of Us" program, the city has begun allowing accessory dwelling units (ADUs) to be sold as independent properties and is actively integrating townhomes and duplexes into areas previously locked behind single-family zoning. CEO Noerena Limon emphasizes that the roadmap is designed to be flexible, allowing states from Oregon to New York to tailor strategies to their specific land markets. By redefining the starter home to include modular units, cottage courts, and shared-ownership models, the coalition hopes to create a replicable model that helps working families build equity rather than remaining permanently sidelined from the housing market.