Regulatory costs preventing construction of entry-level homes

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Regulatory compliance has driven up the price of a new home by an average of 30% in the last five years.

June 02, 2016

Photo: David Sawyer/Creative Commons.

The costs due to regulations on constructing new homes is so high that homebuilders and developers say they are making entry-level home prices unaffordable, according to a CNBC report.

According to the National Association of Home Builders, regulatory compliance has driven up the price of a new home by an average of 30% in the last five years, and makes up 24% of the total cost. One California builder said that county, state, and federal fees can add as much as $50,000-$100,000 to a new home’s price tag.

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