Government Regulation Accounts for Over 40% of Multifamily Development Costs
Recent data from a NAHB & NMHC report says regulation imposed by all levels of government accounts for an average of 40.6% of multifamily development costs. The data, based on a survey of developers across the nation, also examined regulations and other factors that can impact whether development even occurs. They say that identifying duplicative & unnecessary regulatory costs is a critical factor as they work to address the critical shortage of affordable housing facing this nation. Indeed… Stay safe and have a Happy Friday!!
“Three quarters (74.5%) of respondents said they encountered ‘Not In My Backyard’ (NIMBY) opposition to a proposed development. Confronting that opposition adds an average of 5.6 % to total development costs and delays the completion of those new properties by an average of 7.4 months.”
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