Report: Regulatory costs keeping homebuilders out of entry-level market

According to CNBC, developers are not able to increase their profits by maxing out building on their land because many regulations now mandate features like preservation of green space and walking trails. John Burns of John Burns Real Estate told CNBC that regulatory mandates around erosion control, energy codes, fire sprinklers and increased mortgage documentation requirements are positive for the larger community and for the environment but are preventing homebuilders from offering homes at prices that would be affordable to most first-time buyers.

Leave a Reply