A new study from the National Association of Home Builders (NAHB) shows that, on average, government regulations account for nearly a quarter of the price of the average new home. Three-fifths of that final number, 14.6%, is due to a higher price for a finished lot resulting from regulations imposed during its development. The other two-fifths of the house price, 9.7%, are from costs incurred by the builder after purchasing the finished lot.
“It really makes it hard to satisfy the lower end of the market, which is a lot of first-time buyers,” said Paul Emrath, vice president for survey and housing policy research at the NAHB, who conducted the survey of about 400 builders across the country. As reported in the Wall Street Journal.