09/26/2024
There is a lot of discussion around housing affordability these days. Most of the talking points center around housing supply. Let’s be direct and honest here and state it isn’t a supply issue it is a demand and regulation issue. As a country we have admitted at a minimum of 10-12 Million people into the country in the last 3+ years. Those people need places to live either buying or renting. This drastic increase in demand drives prices and supply cannot keep up. This is a creation of government policy not capitalism. The second side is regulation. The current administration requires as a prerequisite for HUD and USDA funding assistance builders must implement the IECC code requirements to the cost of $31,835 on avg with the energy savings of $657 a year. That is a repay period of 48.5 years not including any interest being paid on that 31k+.
We can’t fix housing cost issues if we aren’t even talking about the right things.
