Monday, December 20, 2021

THE HOUSING CRUNCH IS REAL

HOW WE GOT HERE, HOW WE ADDRESS IT AND THE DEMOGRAPHIC SHIFTS THAT WILL IMPACT WHAT AND WHERE WE CALL HOME

Robert Dietz, NAHB chief economist, links the housing shortage to five Ls:

4) Laws (and regulations)

Dietz points to exclusionary zoning practices that require more land than the market demands. 

He said when NIMBYs (Not in My Back Yard) block small and diverse units — it crowds out the entry level buyer, the new home buyer. 

He said the choice for the developer is to build on bigger lots with more expensive homes or to build nothing at all. 

He said regulatory costs and, well-intended but onerous impact fees, drive up costs and add delays. 

Dietz said research shows that regulatory costs account for a quarter of the final price of single-family housing and a third of the cost of multifamily housing.

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