Lost in the national discussion over affordable housing is this: Fully 25 percent of the cost of a new home goes to regulations.
One quarter.
It’s essentially a regressive tax on housing that impacts starter and luxury homes alike.
In Florida, the median price of a new home is a bit higher than the national average – a little over $400,000 — so more than $100,000 of that goes to government regulation.
Sure, the home building market needs regulation, for safety, to protect the environment. But $100,000 for every $400,000 home? It’s excessive and a sign that the bureaucracy is out of control.
How come all we ever hear about is “greedy developers” and “unscrupulous contractors” when, by far, the entity making the most money of a new home is the government?
Red Tape Florida is always fascinated, and disappointed, when groups advocating for affordable housing – such as the Capital Area Justice Ministry – fail to include reducing government regulation in their often-voluminous list of recommendations.
Are these groups really trying to address affordable housing or are they just pushing a narrow ideology.
It should be no surprise to anyone that the affordable housing crisis is particularly acute in Tallahassee – it’s one of the most difficult places in the country to build a house.
And that’s reflected in the numbers. Tallahassee-Leon’s new housing permits totaled just 517 in 2024 LINK COMING. Comparing that to the two counties that rank just above Leon in population is, well, embarrassing. Escambia County had more than double the permits at 1,200 and St. John’s had 2,746, five times Leon’s new home construction.
Surely we all remember Economics 101 and the price curve, based on supply and demand.
These numbers make it easy to argue that something is suppressing Tallahassee’s housing supply, which the law of supply and demand tells us will increase prices every time.
It’s RedTapeFlorida.com’s contention that, in Leon County at least, that “something” is excessive red tape and regulation.
When someone wants to include that as a part of their affordable housing platform, perhaps they will get a more friendly reception. In the meantime, RedTapeFlorida.com will continue its mission of making housing more affordable by shining a light on the good, bad and ugly of local and state government red tape.