Carolyn Chase M onth after month, the media has been filled with reports of the rising fortunes of California real estate investors. But the return of the housing market does not come without much legitimate hand-wringing about those being priced out of decent shelter. The obligatory building industry line is that by reducing their developer impact fees we will get more affordable housing.
Costs are undoubtedly high for anything new.
Market prices for houses are rising by the thousands because new wealth from the economic boom is bidding what they have to for the existing supply. Housing prices aren't so high at this point because of the costs, they are so high because the wealthy tier can afford to finance them. Furthermore, builders are protected by a state law requiring that all fees must have direct connection to the project. They did so at the County under the leadership of Ron Roberts who brought in auditors in response to complaints from builders. Builders fees should match the cost of the infrastructure required for the public systems we all need.