flexiblefullpage - default
Currently Reading

Mud Puddles No Longer Deemed Protected Waters

Advertisement
billboard - default
Regulations

Mud Puddles No Longer Deemed Protected Waters

NAHB Policy Briefing | Decades of uncertainty over federal jurisdiction of U.S. waterways is resolved


By National Association of Home Builders March 2, 2020
Mud puddle with water and surrounding trees is no longer subject to WOTUS regulations
The EPA has announced a new final rule that better defines waters of the U.S. | Photo: David Lally (CC by 2.0)
This article first appeared in the March 2020 issue of Pro Builder.

Environmental Protection Agency administrator Andrew Wheeler resolved decades of uncertainty over federal jurisdiction of U.S. waterways when he announced a new final rule that better defines waters of the U.S. (WOTUS), during NAHB’s International Builders’ Show

For years, NAHB has been pushing the EPA and the U.S. Army Corps of Engineers to produce a more sensible definition of WOTUS, which, because of its excessively broad definition, has slowed and restricted new development, needlessly driving up housing costs. 

In August 2016, then presidential candidate Donald Trump addressed NAHB’s board of directors and promised to rescind a 2015 WOTUS rule that vastly expanded federal overreach by regulating isolated ponds and man-made ditches. The new final rule delivers on that promise.

The new rule announced by Wheeler recognizes the difference between federally protected wetlands and state protected wetlands. It preserves water protections and gives states the certainty to manage their lands and waters in ways that protect both their natural resources as well as their local economies.

Perhaps most importantly, the new rule adheres to the statutory limits on the authority of the EPA and the Corps of Engineers. 

EPA’s new final rule will replace the 1986 rule and will narrow the extent of federal jurisdiction by excluding isolated water bodies, most ditches, and “ephemeral” waters that only form in response to rain. In the end, home builders and developers will be better able to determine whether they need federal permits for construction activities.

 

Single-Family Home Construction Costs and Profit

The cost of constructing a typical single-family home increased, as builder profits fell slightly, according to an annual NAHB survey of home builder members conducted late last year.

The NAHB Construction Cost Survey asked builders about the various components comprising the sales price of typical single-family homes they built during 2019. Survey results showed that while the average new-home sales price climbed to more than $485,000—the highest average sales price (not adjusted for inflation) in the survey’s history—nearly two-thirds of that cost went into constructing the home. 

chart showing construction cost and profit breakdown of single family home sales price

Chart background photo: Elenar / stock.adobe.com

 

On average, 61.1% of the sales price, or $296,652, goes to construction costs, up significantly from 55.6% in 2017. In fact, construction costs as a percentage of sales price are only slightly lower than the highest percentage (61.8%) ever recorded since the cost survey began in 1998. Add to that finished lot costs (18.5%), over--head and general expenses (4.9%), sales com-missions (3.7%), financing costs (1.7%), and marketing (1%), and the average builder profit is 9.1% before taxes, compared with 10.7% in the previous survey in 2017. 

Access a PDF of this article in Pro Builder's March 2020 digital edition

 

Advertisement
leaderboard2 - default
Written By

The National Association of Home Builders (NAHB) is a Washington, D.C.-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing, and other aspects of residential and light commercial construction. For more, visit nahb.orgFacebook.com/NAHBhomeTwitter.com/NAHBhome

Related Stories

Off-Site Construction

Utah Passes Bill to Regulate Modular Construction at the State Level

Goals for housing innovation and affordability meet in the Utah's passage of a new bill that establishes a statewide modular construction program

Government + Policy

Biden's Proposed Fixes for Housing Affordability

In his State of the Union address, President Biden proposed several actions to improve housing affordability and supply

Government + Policy

Biden Administration Extends Federal Housing Financing Program

Funds from the program are used to develop or rehabilitate affordable rental homes, helping boost US housing supply

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.