A Viable Approach to Tackle Rising Rent Prices
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Chapter 1: Understanding Housing Approval Delays
In various regions across the United States, the process of obtaining building permits for new housing developments is significantly delayed by local and state authorities. The wait time for these permits can stretch from three months to over a year. This backlog is often exacerbated by insufficient staffing in city and town offices, along with the need for approvals from multiple agencies that can prolong the process.
For a nominal fee, a private certifier is available to assess a set of permit documents to ensure they adhere to all relevant local building and zoning regulations. If the documents meet compliance standards, the certifier can approve them within just a few weeks. Since certifiers risk losing their licenses for approving non-compliant structures, there is a strong incentive for them to conduct thorough reviews.
When I resided and worked in Sydney, Australia, I witnessed firsthand how long councils could take to approve building modifications, with some cases extending up to 18 months. In contrast, private certifiers could finalize approvals in a matter of weeks for a few thousand dollars. This system encouraged "Complying Development," allowing construction to proceed swiftly if all requirements were met. However, should any aspect fail to comply, such as setbacks, the entire project would need to be reviewed by the council.
Section 1.1: Innovative Solutions in the U.S.
Cities like San Jose, California, and Eugene, Oregon, have implemented pre-approved plans for Accessory Dwelling Units (ADUs). An ADU is a smaller secondary dwelling, typically situated in the backyard of the primary residence. These pre-approved designs enable homeowners to choose from a selection of ready-made floor plans, effectively reducing both time and costs associated with permitting. If a sufficient number of these backyard homes are constructed, it could contribute to alleviating rental pressures.
Subsection 1.1.1: The Impact of Streamlined Approvals
Section 1.2: The Bigger Picture
While accelerating the approval process won't entirely address the imbalance between supply and demand, it can significantly reduce permitting expenses. These costs are typically transferred to consumers, whether they are homeowners or renters. Additionally, with the ongoing rise in labor and material costs, completing home construction sooner could help mitigate overall expenses.
Chapter 2: Your Thoughts on Housing Affordability
What changes do you believe are essential for reducing housing costs? I invite you to share your thoughts in the comments below.