Yes.
The National Association of Home Builders found that governmental regulations –– including state, local and federal –– can account for up 26.4% of the average sales price for a single-family home priced at $499,500.
That figure is close to what Florida GOP gubernatorial candidate Byron Donalds claimed during an Aug. 21 NBC interview, where he said 30% of the cost of a new home is governmental permitting.
Governmental regulations in NAHB’s estimate include zoning approval, architectural design standards and labor requirements.
Florida enacted a law addressing permit fees this year, which establishes timeframes for local governments to make decisions on building permits to avoid delays, among other things.
It’s important to note that Donalds later used this stat in the interview as evidence for the need to bring down governmental regulation and permitting costs in Florida for home purchases, but NAHB’s estimate is scaled on a national level.
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Sources
- The Florida Senate HB 803
