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The nation is suffering from a housing affordability crisis and lower construction costs and increased government subsidies can ease the pain, consumers state in a National Association of Homebuilders survey.
Nearly three out of four households across the country believe a housing affordability crisis is at play, with a majority citing this as an issue at local and state levels, according to a NAHB survey of over 2,200 consumers between Nov. 27 and Nov. 30.
“These poll results confirm what builders from across the nation have been warning about — that housing affordability is an increasingly serious problem in communities across America,” said NAHB Chairman Randy Noel in a press release.
About 55% of respondents think lowered builder construction costs from their local city or county will support developers in creating more affordable homes. The majority of consumers also feel increased government subsidies will be an effective strategy.
“A mix of regulatory barriers, ill-considered public policy and challenging market conditions is driving up costs and making it increasingly difficult for builders to produce homes that are affordable to low- and moderate-income families,” said Noel.
Regulatory costs represent 25% of expenses to construct a single-family home, and 30% of costs to develop a multifamily unit. Policies are also prohibiting certain types of houses from being built and rule out the opportunity for new construction in some large areas.
Nearly 60% of consumers believe that if they were to buy a house within the near future, they would face financial challenges finding something they can afford in their city or county.