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blender · 12-13-2023, 08:45 AM

I'm a home builder, and my comment would be that it isn't one single issue that is making it difficult to get homes built; it is all of the issues that have been mentioned here and more.

A couple things to consider:
Costs to build residential have never been higher. It costs 15-25% more to build a house today than during the pandemic in 2020. Labour costs (direct and indirect) are probably the biggest cause, while materials also have a large impact.

Approvals and permit lead times can be a problem, and the way the local jurisdictions handle their business can be a pain, but I'm not sure it's that big of a deal. Different jurisdictions may have different outcomes, though. I can't speak to what's happening in bigger cities.

I think there is a major disconnect between "affordable housing" and what the market wants. Nobody is starting any spec builds right now; move-in ready ones are sitting empty for sale. I think there is a presumption that if there was enough stock to buy, this housing problem would be solved, hence this "plan" to streamline the planning process. In reality the issue is lack of affordability. Cheap mortgages made $800,000 homes accessible, and the market hasn't corrected yet. I'm not sure it will, or if it will be enough to make a difference. There are a lot of forces fighting a correction.

Bottom line is there needs to be a proper, long-term plan if we want to see actual change. Currently it is pure free market capitalism, which means if you can afford it, you can build it or buy it and if you can't, you can't.

12-13-2023, 08:45 AM	#10423
blender First Line Centre Join Date: Feb 2012 Location: Kamloops Exp:	I'm a home builder, and my comment would be that it isn't one single issue that is making it difficult to get homes built; it is all of the issues that have been mentioned here and more. A couple things to consider: Costs to build residential have never been higher. It costs 15-25% more to build a house today than during the pandemic in 2020. Labour costs (direct and indirect) are probably the biggest cause, while materials also have a large impact. Approvals and permit lead times can be a problem, and the way the local jurisdictions handle their business can be a pain, but I'm not sure it's that big of a deal. Different jurisdictions may have different outcomes, though. I can't speak to what's happening in bigger cities. I think there is a major disconnect between "affordable housing" and what the market wants. Nobody is starting any spec builds right now; move-in ready ones are sitting empty for sale. I think there is a presumption that if there was enough stock to buy, this housing problem would be solved, hence this "plan" to streamline the planning process. In reality the issue is lack of affordability. Cheap mortgages made $800,000 homes accessible, and the market hasn't corrected yet. I'm not sure it will, or if it will be enough to make a difference. There are a lot of forces fighting a correction. Bottom line is there needs to be a proper, long-term plan if we want to see actual change. Currently it is pure free market capitalism, which means if you can afford it, you can build it or buy it and if you can't, you can't.