Unversity Study Show Huge Homebuilding Fees Slowing New Housing In CA

A new report out of University of California Berkeley shows that local home building fees in California can account for as much as 18% of median home prices. In some cities fees can cost from $22,000 to as high as $35,000 per housing unit. David Garcia with the Terner Center for Housing Innovation at UC Berkeley says the high fees are inhibiting new housing growth in California.

"While cities rely on these fees to pay for critical infrastructure and services, the way in which these fees are calculated and implemented is general broad and unclear and can constrain the construction of new housing."

Garcia says the cost of the fees can vary widely from city to city, with Sacramento fees ranging from $8,500 to $13,000 per unit. The study was commissioned by the state Assembly to try and figure out how lawmakers can reduce development fees.

The California GOP in response issued a critical statement in response to the findings which read, "We don’t need a study to know housing fees are a big reason why California is so unaffordable. Still, it’s good have hard data backing up what Republicans have said all along."

Republicans were accused the Democrats of giving lip service the housing crisis.

"(Why) did they refuse to act on two Republican bills to ease the impact of the state's sky-high construction fees?"

They add that they are anxious to work with Democratic counterparts in the Legislature on those bills.

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