The Georgia Public Policy Foundation was pleased to officially kick off its 2022 statewide housing policy tour with a robust discussion in Savannah on April 26.
Nearly 30 civic leaders, elected officials and local policymakers joined the Foundation for the public event at historic Vic’s on the River. The presentation by Policy and Research Director Chris Denson focused on the Foundation’s recent study, “Government Regulation in the Price of a New Home: Georgia.” The statewide survey of developers and builders shows that regulations imposed by government at the federal, state and local levels account for nearly 27% of the final price of new single-family homes in Georgia, higher than the national average.
Participants were especially engaged to discuss the differences between the direct fees paid directly to their local governments and the indirect costs builders and developers incurred to comply with various regulations. Some of the local issues currently affecting the Savannah area that came up during the discussion included the use of local impact fees, the consequences of “inclusionary zoning” policies and how local aesthetic design standards affect housing affordability.
The Georgia survey data showed that regulatory costs during the lot-development phase account for 11.3% of the final house price. Regulatory costs during the construction phase averaged 15.6% of the final house price. Combined, the total cost of regulation accounts for 26.9% of the final price of a newly built single-family home.
Additional housing affordability events will be held in Atlanta on May 11 and Fayetteville on May 25, with further statewide events to be announced in the fall. The Foundation has also presented the results of this study with the Georgia Association of Realtors “Days at the Dome” Legislative Conference and the Home Builders Association of Georgia 2022 Spring Meeting.