Regulatory Costs Add k to New Home Prices
Just when you thought lumber prices were jacking up home prices, along comes a new study from the NAHB that says government regulations (imposed by all levels of gov’t) account for $ 93,870, or 23.8% of the current average sales price of a new single-family home (currently ($ 397,300). The NAHB says that of this $ 93,870 figure, just over $ 41k is attributable to regulation during development, and nearly $ 53k is due to regulation during actual construction. Holy big-government Batman!
“This study illustrates how overregulation is exacerbating the nation’s housing affordability crisis and that policymakers need to take bold steps to reduce or eliminate unnecessary regulations that will help builders increase the production of quality, affordable housing to meet growing market demand,” said NAHB Chairman Chuck Fowke.