In the News
This month, National Association of Home Builders (NAHB) economist Eric Lynch released a new study estimating how much government regulation adds to the cost of a new single-family home.
By surveying land developers and builders, Lynch traced regulatory cost through every stage of a project, from the first zoning application to the final inspection. He estimates that regulation accounts for 26.4% of the price of a new home, or $131,734 nationally.
Here’s My Take
While the study is detailed, it relies heavily on nationwide, self-reported survey data, so it’s impossible to know whether the numbers hold true for Utah. The most notable point from his report is the sheer number of regulatory layers the housing market faces. It shows that the housing market could use some deregulation.
- Zoning approval fees, plus required traffic, environmental, and other studies
- Zoning-driven land dedications for parks, open space, or other land the developer must buy but cannot use
- Zoning standards for setbacks, property layout, and landscaping that go beyond the ordinary
- Permit, inspection, and impact fees charged once construction begins
- Zoning-based architectural design standards, plus a decade of building code changes
Closing
For Utah’s young people trying to get into their first home, some government stepping out of the way, zoning and otherwise, should remain a topic elected officials consider.
