Homebuyers in two North Carolina cities pay thousands of dollars in extra costs, thanks to aggressive growth management plans. That’s the key finding in a new Policy Report from the John Locke Foundation.
The extra costs or “planning penalty” total $21,675 in Wilmington and $13,901 in Asheville. That’s the penalty for a home with four bedrooms and 2.5 bathrooms. Aggressive growth management or “smart growth” policies could raise home prices in other North Carolina cities in the future, according to the report.
“These planning policies reduce the supply of housing because builders are given less land to build on and have to go through a lengthier and costlier process to obtain permits,” said Michael Sanera, JLF Research Director and Local Government Analyst. “The demand for housing is still there, though, and with less housing available, housing prices are driven up artificially.”
Sanera and JLF research intern Joanna Grey compiled their report after sifting through data in a recent national study, “The Planning Penalty: How Smart Growth Makes Housing Unaffordable.” Economist Randal O’Toole prepared that study for his American Dream Coalition.
Visit the John Locke Foundation website for the full report, as well as information about O’Toole’s national research on the topic.