These and other barriers, along with the high demand for housing in the region, helped drive up the cost of Sacramento’s new homes by 13% in 2002 on the heels of a 10% climb in 2001, according to local housing analysts. A serious shortage in available lots resulting from the area’s lengthy approval process for new housing development is adding to cost pressures on housing construction.
According to the Sacramento Business Journal, one major builder in the region is now paying $85,000 a lot, up from $50,000 a lot two years ago — a 70% jump.
Richard Lyon, senior legislative advocate for CBIA, cited recent findings of the Sacramento Regional Research Institute that home building is a $40 billion a year industry statewide, generating 359,000 jobs. In Sacramento alone, new residential construction generates more than $4 billion a year in economic activity and employment for 38,000 workers.
For more information, go to the CBIA Web site.
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