Excessive fees and policies throw a wrench into housing construction

California’s near-unaffordable housing market is no secret, but COVID isn’t all to blame. Housing consultant Timothy L. Coyle breaks down California’s high fees, mandated union-friendly project-labor agreements, and other requirements that exacerbate prices for residents. Why isn’t Gov. Newsom fighting against red tape costs to encourage housing construction?

The saga of the “Pearl Apartments” is repeated over and over again in just about every one of California’s communities.  Regardless of whether their developments are being proposed for market-rate consumers or lower-income renters, state housing producers face the same consequences:  extremely high costs. 

In addition to always-pricey land acquisition, high housing costs come in the form of sky-high fees, senseless parking requirements, public school construction, other deferred infrastructure and seemingly endless lawsuits – all of which are man-made and controllable.  

Adding insult to injury, more and more city councils are demanding union-friendly project-labor agreements accompany project applications.  These agreements almost always require construction workers are paid higher, prevailing wages. (The Terner Center says prevailing wages alone can add as much as 20 percent more than market wages.) These also are controllable costs.

This article originally appeared in Fox & Hounds Daily. Read the whole thing here

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