Re:U.S. Housing Market Is Nearly 4M Homes Short of Buyer Demand
by zamfi on Friday April 16, 2021 @06:09PM
(#26839593)
We have made it extremely expensive to build new housing in much of the United States.
Between Byzantine development regulations, density and growth caps, local zoning boards that allow any development to be dragged through years of negotiation as long as neighbors show up for meetings, the actual “building” part is very hard to get to. Beyond the cost of lawyers, years of property taxes paid while negotiations stall, etc., the years-long timescale of these developments also makes financing hard to come by, limiting the number of projects in progress at any given time.
No surprise that the result is not enough housing, and a huge increase in price: demand is growing and relatively inelastic — the population keeps going up and everyone needs housing!
Between Byzantine development regulations, density and growth caps, local zoning boards that allow any development to be dragged through years of negotiation as long as neighbors show up for meetings, the actual “building” part is very hard to get to. Beyond the cost of lawyers, years of property taxes paid while negotiations stall, etc., the years-long timescale of these developments also makes financing hard to come by, limiting the number of projects in progress at any given time.
No surprise that the result is not enough housing, and a huge increase in price: demand is growing and relatively inelastic — the population keeps going up and everyone needs housing!