Labor, lending, local regulatory restrictions, lots, and the rising price of lumber are hampering new construction, says National Association of Home Builders' chief economist Robert Dietz.
Last week in a panel discussion at the National Association of Real Estate Editors conference in Las Vegas, Dietz explained that lumber tariffs put in place by the Trump administration last year have an effective rate of 20 percent, and are "very much a tax on homeowners and renters," causing prices to go up about $3,000 for a typical newly-built apartment, and $9,000 for a typical new home, HousingWire reports.
Dietz recalled an analysis that NAHB conducted a few years ago that found that nearly a quarter of the cost in single-family homebuilding went to regulatory costs. He explained that two-thirds of that amount is due during the lot development stage, going to lot fees, permits and other regulatory costs. Dietz also pointed out a new joint survey that NAHB conducted with the National Multifamily Housing Council that shows regulations make up 32 percent of costs associated with a typical multifamily development.
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