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Approval and Permit Process Top Challenge for Builders
The development approval and permitting process has emerged as the most challenging issue for the nation’s home builders in NAHB’s latest survey of the critical issues facing the association’s membership. With some differences among the various regions of the country, the issue nationally received an average rating of 4.32, on a scale where 1 indicates that an issue is not critical and 5 that it is very critical.
Following closely behind as the second most vexing issue for builders was the cost of liability insurance, which averaged 4.29. This had been the leading issue confronting NAHB members since it was included in the survey in 2002 until the current critical issues report, which covers the period of October 2004 through December 2005.
The cost and supply of lumber and cement were in third and fourth place in the latest survey, with ratings of 4.25 and 4.23, respectively. Development costs were ranked fifth with a rating of 4.l9.
Labor availability was ranked sixth in the latest survey. Labor shortages were the leading concern of NAHB members for 11 consecutive quarters — from the second quarter of 1998 through the third quarter of 2001. That concern faded gradually since that time, dropping to 14th place during the July 2003 to June 2004 period.
Rounding out the top 10 critical concerns were: the cost of lots, in seventh place, averaging 4.16; impact fees and development exactions, in eight place, at 4.14; the availability of lots, in ninth place, at 4.10; and availability of affordable housing, in 10th place, 4.08.
Looking at responses from different parts of the country, the developmental approval and permitting process was significantly lower on the list in Region C (Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Dakota, Ohio and South Dakota) and Region D (Arkansas, Kansas, Louisiana, Mississippi, Missouri, Nebraska, Oklahoma and Texas).
In Region C, the top three concerns were related to the price and supply of lumber (4.36), gypsum board/sheetrock (4.31) and cement (4.25).
In Region D, liability insurance costs (4.59) remained the greatest challenge for members of NAHB, followed closely by storm water management and permits (4.41).
The availability of lots (4.54) was the most critical issue for NAHB members surveyed in Region A (Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont and Virginia), followed by the availability of affordable housing (4.46) and the cost of lots (4.44).
Lot costs (4.68) were the top worry in Region E (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.)
For more information, e-mail Gerry Keegan at NAHB, or call him at 800-368-5242 x8326; or contact Sam Leyvas, x8584.
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