While high demand and low inventory are the major contributing factors to the sharp rise in home prices this year, a new study shows that there are hidden costs being passed along to home buyers when purchasing a new home.
According to a new NAHB study, government imposed regulations account for $93,870 on average on the final price of a new single-family home. These regulation costs are associated with federal guidelines on new home construction, zoning and land development regulations that home builders must contend with.
These costs also appear to be getting pricier. The current estimate of $93,870 is an 11 percent increase from a 2016 study that placed these costs at $84,671.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.