Government Affairs
Shining a light on the hidden costs of home building by Andrea Smith Building Codes and Policy Manager
Every day, BIAW members work to build homes for Washington families. These homes provide space to tuck children safely into bed at night, put up glimmering holiday lights and have barbeques with friends. This is important work. But it’s about more than safety, space and comfort. Homeownership is still the number one way for families to build generational wealth and future opportunities. Sadly, many policy makers don’t connect the dots between their decisions and the consequences. The delays, exactions and regulatory requirements they consistently advance just keep pushing homeownership further and further out of reach for people all across Washington. BIAW recently completed three studies that illuminate the hidden costs associated with permitting delays, restrictive zoning ordinances and government overregulation and how these costs drive up the overall sales price of Washington homes. Average permit delay is 6.5 months, resulting in holding costs of over $22,000 One new study shows the connection between the length of permitting delays and the median new home price in each county. We found the longer permits are delayed, the more holding costs a homeowner or builder can expect, and the higher the final sales price of the home will be. To ensure that families can access homeownership without a substantial cost burden, meaning more than 30% of their monthly income is spent on housing, BIAW
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building insight
urges jurisdictions to identify best practices in technology and internal permitting processes to fix flaws that slow permit approvals and drive up home prices. Statewide, zoning accounts for $71,739 of the cost of a newly constructed home Zoning ordinances increase the cost of new home construction by nearly $4,800 and as much as $243,000, depending on location. Our research indicates that restrictive zoning regulations lead to higher home prices throughout the state. To combat skyrocketing housing prices and demonstrate a true commitment to homeownership opportunities for families in their jurisdictions, state and local governments should focus on zoning ordinances friendly to single-family home construction. Regulations from all levels of government represent $124,000 of the overall sales price of a new home Regulation that goes above and beyond protecting the health and safety of occupants does nothing more than limit the opportunities for families to achieve homeownership. BIAW will be working hard this legislative session to remind legislators they need to take bold steps to reduce or eliminate unnecessary regulations that make housing more expensive and less affordable to their constituents. Homeownership builds generational wealth, strong communities and a healthy future for Washington. Let’s cut the hidden costs so more families can enjoy the dream of homeownership.
