The pace of new home construction isn’t impacted only with a deficiency of qualified labor – additionally it is slowed by way of lack of local government staff who must approve permits before construction may start.
Slowed by permit delays New Construction Slows Down
The manpower shortage at city governments across the country has increased the time it’s going to take for builders to get permits as well as other approvals. While in the recession, construction declined and city budgets were cut. As a result, a skeleton crew today can’t keep up with the onslaught of new projects submitted for approval. Burned because of the recession, however, many local governments do not want to employ a lot of new employees to speed the process along.It generally takes two to three months to secure a permit before building can begin, but Bradley Gaskins, chairman of the codes and standards committee of the American Institute of Architects, said the group’s members are seeing permit approvals take six to eight months in hot markets such as Florida and California.
A high amount of apartment construction permits is partly to blame. Axiometrics predicts that the U.S. will build up to 1 million apartments within the next 36 months, but those projects are typically detailed and take a lot of time permitting. For that reason, smaller projects such as single-family homes get delayed.The delay affects the builders along with the buyers. They could cost developers thousands of dollars in employee salaries, interest on loans as well as other items. In the long run, “it raises the costs to the consumers because ultimately all the costs are passed onto us,” says Gaskins.
A high amount of apartment construction permits is partly to blame. Axiometrics predicts that the U.S. will build up to 1 million apartments within the next 36 months, but those projects are typically detailed and take a lot of time permitting. For that reason, smaller projects such as single-family homes get delayed.The delay affects the builders along with the buyers. They could cost developers thousands of dollars in employee salaries, interest on loans as well as other items. In the long run, “it raises the costs to the consumers because ultimately all the costs are passed onto us,” says Gaskins.
The permitting problem can also impact homeowners who have no intentions to move.
“We saw this (permit) increase coming,” says Brad Buchanan, Denver’s executive director of community planning and development. “We failed to see it coming to the extent which it came.”
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