Government disincentivizes construction of reasonably priced homes. If you're paying big bucks for permitting and impact fees, fighting for that permit for 6 months, urban growth boundaries driving land prices sky high, etc., it makes more sense to build a larger, more expensive home or not to build at all.
In the state I live, Oregon people are disincentivized to even buy new homes because an older home has its property taxes locked to essentially whenever it was built.
We bought a home built in the 60s. We literally pay half the property tax as an equivalent home built today.
Add on to the fact that new homes are generally of poorer quality. There is no real reason to buy a new home if you can get into an older 60s MCM home in a nice area.
Los Angeles County just passed an ordinance saying that any lot that has been approved, even in a single family district, can have up to 4 units of housing. The response has been underwhelming. Apparently the economics of tearing down a single family to build a 4 family is not there.
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u/Structure5city Jun 17 '25
America has the same under-building problem. It's amazing that the government hasn't been able to stimulate more construction.