Here's how higher regulatory costs are impeding housing affordability

Despite recent declines in mortgage interest rates, housing affordability continues to be a key concern for homebuyers. And, rising cost burdens mean a larger share of household budgets are spent on rent. For example, according to the NAHB/Wells Fargo Housing Opportunity Index, in early 2012 a typical family could afford 77.5% of all new and existing homes that were sold. Today, that share stands near a 10-year low at 61.4%. The percentage would be even lower if not for a recent uptick in income growth. It is widely understood that a lack of inventory – particularly a dearth of new construction at affordable price points – is the primary cause of today’s housing challenges. (HousingWire)

Read Full Article