“Shelter inflation—rent and homeownership costs—is still rising well above a 5% rate driven largely by a nationwide shortage of 1.5 million housing units,” Martinez said. “The only way to tame inflation and bring housing costs down is to remove the barriers preventing home builders from increasing housing production.”
Martinez highlighted several factors contributing to the rising housing costs, including tighter financing conditions, limited land supply, permitting delays, and increasing fees.
“In today’s market, tighter lending conditions, a limited supply of land, permitting roadblocks and delays, and rising fees are all contributing to increased construction costs that make it increasingly difficult to boost the supply of housing,” he stated.
The NAHB’s 10-point plan addresses these issues through sensible policy solutions at all levels of government. Key points include reducing excessive regulations, fixing building material supply chains, overturning inefficient local zoning rules, and promoting careers in the skilled trades to address labor shortages in the construction industry.
Regulatory costs, which encompass compliance with building codes, account for nearly 25% of the cost of a single-family home and over 40% of the cost of a typical apartment development.
Source: mpamag.com