Re:California Approves Statewide Rent Control
by PorterDuff on Thursday September 12, 2019 @12:45AM
(#20948080)
Do they require fire suppression systems and solar panels in the rest of the US? I honestly don't know.
Re:California Approves Statewide Rent Control
by sgc on Thursday September 12, 2019 @01:42AM
(#20948380)
Fire suppression is required everywhere AFAIK. Solar is not yet required, but will be next year. So it has had no effect on current Ca housing. That is a stupid rule and should have exemptions for areas that don't receive enough sun due to fog/trees/etc. But solar will still be far, far cheaper than permits and will add value/decrease ownership costs for most homes.
In California, 25% of a new SFR is land. Another 25% easy goes to permits and municipal utility connections. 40% construction costs (including paying the boss a salary), and if you are lucky, 10% profit. Simply reducing permitting costs and streamlining the process to reduce holding costs (without even easing restrictions, just being more efficient/faster at the municipal level) could shave 20% off a new home price. That would drive down all home prices to some extent and open up a large number of people to get out of the renters pool.
So CA government is the major player to blame for housing costs, and these laws are in place of just doing their jobs well. This might drive prices down too, eventually, but not nearly as quickly or fairly as bureaucratic reform would.