Can Local Governments Impede Housing Markets?
Housing markets have been adversely affected by the addition of significant building costs that did not exist as recently as 15 years ago, according to a recent survey of more than 100 builders by John Burns Real Estate Consulting (JBREC). Analysis of the top 33 markets in the country found that the number of new home communities has increased by only 4 percent in the last year, according to Burns. At that pace, the number of new homes permitted will not reach 1.1 million until 2023, which is consistent with historical averages. Local governments proved to be the primary reason that volume recovery was stronger in some areas than in others. The survey found that government attitudes toward housing tend to be either friendly and affordable or unfriendly and unaffordable.