Regulatory costs inflate new home prices, builders say

New_Home_Construction__alisonhancock_-_Fotolia.com_thumbnailBy Chris Kirkham | The Wall Street Journal

As the cost of construction permitting has risen over the past decade, Atlanta home builder Dennis McConnell has taken a new approach with customers.

He now itemizes the regulatory costs so buyers can see firsthand why the price tags for his houses are so high. Among recent charges he has outlined: $8,000 for a new type of storm-water capture device required for each house, $3,500 for customized architectural plans required on every lot and about $15,000 to remove a tree from the property.

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