The report’s foundation is based upon a very important premise, “In the United States, housing supply has failed to meet demand, resulting in higher housing costs.” This is no longer a debatable issue, the market is not meeting population growth and therefore driving housing costs upwards. In Sarasota County, no one is in doubt that we are experiencing this issue right now, home sales prices have skyrocketed as we experience a demand from the flight of people from high-tax states.
What is inhibiting the building of housing supply? Regulation. According to the report, “A significant body of research has examined the relationship among land use regulation, housing supply, and housing prices, finding that increasingly strict local and State government regulations have driven up the cost of building new homes and prevented housing supply from keeping up with demand.”
Otherwise known as “regulatory tax,” the cost of regulation can be serious and significant.