Everyone wants a home they can call their own.
Safe, decent, affordable housing provides fundamental benefits that are essential to the well-being of families, communities and the nation.
Yet owning or renting a suitable home is increasingly out of financial reach for many households. In fact, almost a third of the nation’s households are cost burdened and pay more than 30 percent of their income for housing.
The cost of housing is determined by a complex equation involving labor and materials prices; interest rates and financing costs; federal, state and local regulations; and supply and demand.
In today’s market, a limited supply of land, a shortage of skilled labor, and rising fees are all contributing to higher prices. NAHB analysis shows that regulatory requirements alone account for 25 percent of the cost of constructing a single-family home, and 30 percent of the cost of a multifamily unit. These factors make it difficult to increase the supply of affordable housing and to ensure that it meets the needs of increasingly diverse households.
In many areas, less tangible factors such as community perceptions, expectations and demands also play an important role in determining the availability and cost of housing.
Yet owning or renting a suitable home is increasingly out of financial reach for many households. In fact, almost a third of the nation’s households are cost burdened and pay more than 30 percent of their income for housing.
The cost of housing is determined by a complex equation involving labor and materials prices; interest rates and financing costs; federal, state and local regulations; and supply and demand.
In today’s market, a limited supply of land, a shortage of skilled labor, and rising fees are all contributing to higher prices. NAHB analysis shows that regulatory requirements alone account for 25 percent of the cost of constructing a single-family home, and 30 percent of the cost of a multifamily unit. These factors make it difficult to increase the supply of affordable housing and to ensure that it meets the needs of increasingly diverse households.
In many areas, less tangible factors such as community perceptions, expectations and demands also play an important role in determining the availability and cost of housing.
PROBLEMSOn a dollar basis, applied to the current average price ($394,300) of a new home,
regulation accounts for $93,870 of the final house price. Of this, $41,330 is
attributable to regulation during development, $52,540 due to regulation during
construction. In dollar terms, the NAHB studies show the cost of regulation continuing to
rise between 2016 and 2021, although not as much as it did between 2011 and 2016.
RESOURCESHousing Fuels the Economy in Maryland
Housing is central to American family life and critical to a thriving economy. The state of the housing industry is a good barometer of the broader economy and the condition of the nation's social fabric. Use the map to see how your state and local area are doing in terms of new home production, housing affordability, remodeling activity, and other benchmarks. Housing Portal >>> |
SOLUTIONSWHAT WILL HELP?
PLANNING
ZONING AND SUBDIVISION REQUIREMENTS
COST WAIVERS AND REDUCTIONS
PARTNERSHIPS
OTHER IMPORTANT INCENTIVES
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