Often, policies that increase costs or constrain housing production are made in the absence of complete information. Housing is a highly regulated industry, perhaps the only U.S. industry where a separate permit is required for each unit of production. Moreover, permit approval is under the control of local elected officials whose constituencies are often dominated by owners of existing homes. In the absence of solid information about existing affordability problems, elected officials may make un-informed decisions. Found in this section are reports on the price of building materials, which can show how certain costs that are beyond the control of local home builders are on the rise. The NAHB-Wells Fargo Housing Opportunity Index is a measure of affordability produced quarterly for dozens of different metropolitan areas across the country. Additional information includes the positive economic consequences of home building to counter statements such as “housing doesn’t pay for itself.”
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