Affordable Housing for working families.
Researchers studied the effects of local government fees, regulations, and requirements on the cost of new single and multifamily housing, both purchased and rented. Their report identifies the government barriers to housing production and seeks to create greater overall housing affordability by reducing costs and increasing efficiencies in the approval process.
Many aspects of the regulatory process lead to higher housing costs, the report found. The effect of adding additional layers of regulations over decades has been to raise the price of for-sale and rental housing beyond the reach of many county residents. The high cost of housing is the single greatest challenge to the fulfillment of the San Diego region’s potential.
High Regulatory Costs
About 40% of the cost of housing across all price segments is due to government regulation. The time involved in the approval process can add 15% or more to the price of a new home. Projects where master plans aren’t already in place can require 12 years or more before the first dwelling is ready for sale.
A Lengthy Process
Currently, the housing approval process can take several years to complete. Prolonged delays can create millions of dollars in additional costs, decreasing home affordability.