The cost of housing has been on the rise in recent years. This has made it increasingly difficult for people to find affordable housing, which can have a major impact on their quality of life. Many barriers often stall the process of creating a new housing development.
However, there are some barriers that make it even harder to build new homes, and these need to be addressed if we want to make housing more affordable for everyone.
Restrictive Covenants
Restrictive covenants are legal agreements that can limit what can be done with a piece of land. For example, a restrictive covenant might state that a piece of land can only be used for residential purposes and cannot be used for commercial or industrial purposes.
Zoning Regulations
Zoning regulations are rules that dictate how the land can be used, and most times, these laws limit the construction of new housing developments.
In order to build new homes, developers must first get permits and approvals from the local planning commission. This can be a lengthy and expensive process, often taking months or even years to complete. For example, a piece of land might be zoned for residential use, so it can only be used for homes and cannot be used for businesses or other purposes.
Limited Access To Capital
Having a lack of access to capital is not a good sign for developers. This can be a problem for small developers who do not have the financial resources to get started. It can also be a problem for larger developers who are trying to finance a large project.
However, in today’s economic climate, many banks are reluctant to lend money for new construction projects. In either case, a lack of access to capital can stall or even stop a housing development.
Rising Construction Costs
Construction costs have been on the rise in recent years, which has made it more expensive to build new homes. This is a major barrier to housing development, as developers must be able to cover the cost of materials and labour in order to make a profit. The cost of labour and materials has increased, while the availability of skilled workers has decreased.
These factors have combined to drive up the cost of new construction projects; rising construction costs often lead to higher prices for new homes, making them less affordable for buyers. While some developers can absorb these rising costs, others find themselves priced out of the market altogether.
Inadequate Infrastructure
Another barrier to housing development is inadequate infrastructure. This can include a lack of roads, water and sewer lines, and public transportation. Most times, the existing infrastructure is simply not adequate to support new housing development.
Inadequate infrastructure can also be a problem in inner-city neighbourhoods, where the infrastructure is often ageing and in need of repair.
Community Opposition
This is often referred to as NIMBYism (Not In My Backyard). When a new housing development is proposed, it is not uncommon for members of the community to voice their opposition. There are many reasons people might oppose recent developments, such as concerns about traffic, noise, and the general appearance of the development.
Community opposition can be a major obstacle for developers, as it can delay or even stop a project.
Conclusion
There are many barriers to housing development. These barriers can often make it difficult for developers to build new homes, though not impossible. It will require a concerted effort from policymakers, developers, and residents alike, but with cooperation, significant progress can be made in overcoming some of these barriers.
