As Regulations Shift Housing Makeup, How Will it Impact CMs?
This editorial in Builder Online looks at how the increasing cost of regulations are affecting the affordability of housing and the choices homebuilders have to make when evaluating their business models:
“Housing is over-regulated, and a direct consequence of that over-regulation is a lumpy shortage of homes--by price and type--in locations around the country. What's more, a lack of affordable homes and apartments is a constraint and suppressor of economic mobility that could kick our economy into another growth gear.”
This article begins to explore the shifts currently occurring in the housing industry due to issues surrounding affordability and access. Regulations are driving up the cost of land development and access to credit. Meanwhile, those factors are seemingly influcing the preferences of potential buyers away from single-family units in suburban areas toward mixed use housing in centralized urban areas. All of these factors will likely alter what housing looks like ten years in the future and will undoubtedly have an impact on what the component manufacturing industry looks like.