Affordable Homes, Where Are They ??

[Lorraine Hadden]

Is there really a LACK OF AFFORDABLE HOMES nationwide?

Is there a housing shortage or is there really a problem with the BARRIERS caused by productivity, land use, zoning and mandates that limits construction?  The news cycle notes that the limited availability of affordable homes is primarily due to a significant gap between the demand for housing and the supply. I really think we need to have a broader conversation about barriers to new construction in real estate! Take for example the lack of productivity where construction projects often experience time and cost overruns, rework or quality concerns.  Then there's misaligned incentives players in the construction industry may make more money the longer a project takes to get completed.  What about land use and zoning policies that exclude affordable housing or even the high cost of living.

Did you know that since January 1, 2020, California requires new construction homes to have solar panels? It's called The California Solar Mandate - this building code requires new homes to have a solar photovoltaic (PV) system. The system must be large enough to meet the building's annual electricity usage. As of December 2024, the average cost to install a solar panel system in California is $2.31 per watt, including installation. For a 5 kW system, this would cost around $11,563 before incentives. THIS ADDITIONAL MANDATORY CONSTRUCTION COSTS UNDOUBTEDLY GETS PASSED ON TO THE HOMEBUYER!!!

What are your thoughts on the "LACK OF AFFORDABLE HOMES"??