If we are serious about slowing the hyperactive escalator lifting our housing prices to higher and higher levels, then we have to push the emergency button and explore what part is malfunctioning.
It is not a deflection to start with our own governments’ responsibilities. It is the best place to start, for good reason.
While we may not be able to much influence a market – particularly one so swayed by global capital, obliged by material and labour costs and affected by the anxious emotions of buyers and sellers – we can determine what governments charge, how long they delay and what impact they have on housing affordability.
Recent studies have some disquieting news. The escalator speed is owed in no small measure to the government revenue-grab.
Taxes, fees and levies level a surprising burden. The glacial pace of approval adds mightily to the price. The modern building codes require additional expenses that are, as one builder told me last week, increasingly “complicated but not sophisticated.”
Are they making housing unaffordable? No. Are they making housing overpriced? Seems so.
Full Story Here: https://biv.com/article/2018/05/government-major-contributor-higher-metro-house-prices