Increase in Home Prices a Result of More Federal Regulation
Earlier this week, the Housing and Insurance subcommittee held a hearing entitled “The Future of Housing in America: Government Regulations and the High Cost of Housing.”
Spokespersons from the National Multifamily Housing Council and the National Apartment Association, the Manufactured Housing Institute, the New York City Department of Housing Preservation and Development, the National Association of Home Builders, and the University of Texas were all represented. Watch the full hearing here.
Each witness agreed the cost of housing is increasing and becoming unaffordable for many middle and low-income Americans. While many reasons were given for this increase, a common theme was government regulation. Mr. Clyde Holland, speaking on behalf of the National Multifamily Housing Council and the National Apartment Association, cited a study that showed government regulation increased the cost of housing by 40% in San Diego, California.
Examples of government regulation mentioned at the hearing included rules imposed under Dodd-Frank and the Consumer Financial Protection Bureau (CFPB), environmental regulation and land confiscation by the EPA, zoning laws and regulations by the Department of Housing and Urban Development (HUD), rent control, and rising labor costs due to regulation from the Davis-Bacon Act.
This hearing made clear Congress has a lot of work to do to reduce government regulation in the construction and selling of homes. Getting government off the backs of the housing market will go a long way in reducing the cost of owning a home.