Why aren't contractors building more starter homes? Excessive fees imposed by state and local politicians - American Experiment

Why aren't contractors building more starter homes? Excessive fees imposed by state and local politicians - American Experiment

"Last week, noting how “The average single-family home in the Twin Cities will cost you $294,000 on average, a record high and 6-percent increase over June of 2018”, Kare 11 looked at ‘Why contractors aren’t building more starter homes‘. They came to the same conclusion as we have: excessive fees and regulations make Twin Cities housing expensive.

As Kare 11 report,

A recent conversation in the newsroom spawned the question: With demand so high for homes in the $150,000 – $250,000 price range, why don’t contractors just build more?

“I’d love to,” said Tony Wiener, vice president of Cardinal Home Builders. “It’s not possible.”

Wiener said he gets a call or email once a week asking for a new two-story house in the starter home price range. But he said the math makes it impossible for a number of reasons, and construction costs or profit are not foremost among them.

“One third of the total package price, with the land, is in the regulatory costs. Your wetland fees, your park dedication fees, your permit costs,” Wiener explains..."

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