Government regulation blamed for cost of housing

PHILADELPHIA -- Aug. 1, 2006 -- Misguided local governments are largely to blame for high land and production costs that continue to push the cost of housing beyond the means of many American families, according to housing experts at a symposium sponsored by Wells Fargo Home Mortgage.

"At the local level, land-use regulations often make it difficult for builders to develop affordable housing. Large minimum-lot sizes, restrictions on land available for residential development, impact fees that place the marginal cost of infrastructure and public services on new-home buyers, and approval processes that add risk and delays all play a hand in rising house prices," concluded the Joint Center for Housing Studies at Harvard University in its "State of the Nation's Housing 2006" report.

The symposium pointed out that although many land-use rules address important concerns such as environmental protection and public health, "the stricter the development regulations, the more intense the affordability problems in that community."

Source: Philadelphia Inquirer, Alan J. Heavens (07/30/2006)