Red States Cut Rules to Spur Housing Growth as Regulations Add $95,000 to New Homes
Updated
Updated · Fox News · Jun 5
Red States Cut Rules to Spur Housing Growth as Regulations Add $95,000 to New Homes
1 articles · Updated · Fox News · Jun 5
Summary
Southern red states are absorbing migration and job growth by easing zoning, permitting and other building rules, housing industry leaders say, giving Texas, Florida and peers an edge in adding supply.
NAHB says regulation adds about 24% of the cost of a typical single-family home—nearly $95,000—and about 41% of the cost of a multifamily unit, making affordability harder even in fast-growing markets.
Jim Tobin said the strategy works best when states expand roads, utilities and other infrastructure alongside housing, because rapid population gains can outpace public services and trigger new bottlenecks.
Washington is weighing a bipartisan housing package meant to push local governments to lower development barriers, as high mortgage rates, thin inventory and cost-of-living worries keep housing affordability politically salient ahead of the midterms.