Miranda and Cole Potokar were coming of age as U.S. housing prices were skyrocketing.
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Two years ago the 23- and 24-year-olds married and moved into her grandparents’ basement to save money. In an interview with NPR, they said they joked that they should have bought a house back in third grade [1]. Every time they found a listing, it sold before they could act and they eventually gave up. The couple live in Utah, where the average home price has topped half a million dollars since 2022.
Then came a break. The Potokars qualified for a new development north of Salt Lake City — part of Gov. Spencer Cox’s ambitious push to build 35,000 lower-cost “starter homes” in five years. Last year, lawmakers approved low-interest construction loans for starter homes, noted NPR.
This year, the couple moved into a 1,400-square-foot two-story house priced under $400,000. Cole called it their lucky chance at stability: “a base not only for like our family, but also … to set us up for the future.”
But luck is the operative word. The project’s builder, Nilson Homes, has a huge waitlist, according to the report. As of May, statewide only about 5,100 starter homes have been built or started since the governor’s initiative launched. For every Potokar success story, many more are being priced out.
Andra Ghent, a finance professor at the University of Utah, told NPR she hasn’t seen "concrete steps that would really move the needle right now."
Why the starter home is slipping away
Utah’s challenges mirror the nation’s. The average U.S. home price has climbed to about $363,000, according to Zillow [2]. But the state’s average price rises well above the national figure, at $529,260.
At the same time, the median age of a first-time buyer in the U.S. jumped to 38 in 2024, up from 35 in 2023, according to the National Association of Realtors [3]. For younger generations, homeownership is no longer an early milestone but a midlife achievement.
Experts say the roots are straightforward but stubborn. America faces a shortfall of nearly 5 million homes, thanks to years of underbuilding since the 2008 crash. Add in rapid in-migration to Utah, family sizes that run larger than the national average, and restrictive zoning laws that favor quarter-acre lots, and the result is too few houses chasing too many buyers. Inflation and high interest rates compound the squeeze, making mortgages unaffordable even for couples with two solid incomes.
Builders like Jed Nilson are trying to bridge the gap with smaller homes and smaller lots, but without zoning reform, most developers have little incentive to prioritize affordability. “If developers are stuck with that minimum lot size, they’re going to build luxury homes,” said Ghent.
"The unfortunate fact is that we still don’t have enough housing in this country for people who need it. Construction has helped prevent the housing deficit from ballooning, but it hasn’t yet begun to close the gap," said Orphe Divounguy, senior economist at Zillow, in July. "We know what works: lower building restraints to allow for more density and less expensive housing. More of these measures at the local level can help get more homes built and begin to ease this outsize financial burden for millions of Americans."
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
What other states are doing, and where buyers fit in
Utah’s program is ambitious but not unique. California and Oregon recently passed laws to override local zoning laws. Even Texas recently loosened its zoning codes to allow smaller lots. These efforts are uneven, but they point toward a national trend: without denser, more varied housing stock, the market won’t budge.
For individual buyers, though, waiting for lawmakers to fix the system isn’t much of an option. Financial planners stress the decision to buy should hinge less on headlines and more on personal readiness: stable income, manageable debt, and the intent to stay put for a few years while your home appreciates. That doesn’t mean rushing in at all costs. In overheated markets like Salt Lake City or San Francisco, renting may still be the smarter play while building savings.
But there are ways to move closer.
First-time buyer loans and programs at the state and federal level can help with down payments or closing costs, though eligibility rules vary. High-yield savings accounts or certificates of deposit can accelerate savings by earning a few hundred extra dollars a year. Some buyers are broadening their search to condos, townhouses, or smaller metros where prices haven’t yet spiked. And negotiating a longer lease can lock in rent while giving families more time to prepare.
Utah’s experiment shows both the promise and the limits of state-driven housing fixes. Couples and families like the Potokars now own homes they once thought impossible, thanks to targeted incentives and willing developers.
Yet with only a fraction of the governor’s goal achieved, and thousands still waiting, the bigger picture remains unchanged: housing is getting more expensive, not less.
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[1]. NPR. "Starter homes are scarce, so Utah set a target to build more. Here’s how it’s going"
[2]. Zillow. "United States Housing Market"
[3]. National Association of Realtors. "First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High"
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