Business Review Board / May 10, 2016

Government Causing Huge Increase in Housing Prices

Regulation accounted for a nearly 30% increase in the cost of a house.

In a five-year period, government regulation increased the price of building a home by nearly 25%, a report from the National Association of Home Builders finds. When it comes to buying a new home, the average homebuyer is paying $84,671 more today than he or she was in 2011. Most of these costs come from developing the lot — even before concrete is poured or framing goes up. Thanks, Environmental Protection Agency. According to the NAHB, in this half decade, regulation has accounted for a nearly 30% increase in the cost of a house. “By comparison, disposable income per capita increased by 14.4% from 2011-2016,” NAHB wrote. “In other words, the cost of regulation in the price of a new home is rising more than twice as fast as the average American’s ability to pay for it.”

Pricing Americans out of homes is a government-caused problem. When will the government think it should impose a government-inspired “solution”? Before the 2008 housing bubble, statists decided that every American should be able to take out a home loan. Will they repeat history and think of a similar situation in a few years? Government regulation weighed down our economic growth. Now it’s come for new homeowners.

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