Housing markets across the country are in need of affordable housing. Builders want to grow that sector, but they can’t. The reason? Rising regulatory fees.
The National Association of Home Builders’ latest study shows that, on average, government regulations account for 24.3 percent of the final house price. The disposable income per capita rose 14.4 percent between their 2011 and 2016 surveys, but regulation costs have risen more than twice as fast. Builders say they simply can’t build single-family homes that fall below FHA loan limits in many counties.