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The hidden $132,000 red tape tax facing today’s new homebuyers
Fox Business • • business
Key Points:
- A new National Association of Home Builders (NAHB) study finds that government regulations add approximately $132,000, or 26.4%, to the cost of a typical newly built single-family home, significantly impacting housing affordability.
- Regulatory costs have risen about 40% over five years, increasing from $93,870 in 2021 to $131,734 today, with changes to building codes contributing the largest portion of these added expenses.
- Builders face additional costs from zoning approvals, permit fees, environmental studies, labor regulations, and project delays, with over 94% of developers reporting delays due to regulations.
- The housing market remains under pressure, with builder confidence low and 35% of builders cutting prices in June, while the nation faces a shortage of roughly 1.2 million homes.
- NAHB emphasizes that while not all regulations should be removed, understanding their financial impact is crucial for policymakers aiming to enhance housing affordability and increase home supply.
