Building is an overregulated and complex issue - says reader

As to why housing costs are so high - cost of new builds drives higher prices for existing housing. 

The assumption that the lumber prices alone should lead to lower housing prices isn’t true. There are other factors such as labour costs, developer charges, building permits, etc. Building is not a precise science, it is an art. 

The application of new types and grades of materials requires highly skilled labourers. 

Changes in the building code are also a factor.

Building has gone through a major transformation. No longer can just anyone with a hammer be a builder. Pre-built and on-site assembly reduces building time, but does not reduce cost. Building is also an over-regulated and complex business. 

It includes engineering, finance, and marketing, just to name a few.

A multi-layered bureaucracy slows down the process adds to the cost. In most cases, it takes longer to issue a permit than it does to complete the actual build.

Contrary to the belief of price-gouging, the average builder works in a very slim margin, in a very competitive business, for a net return less than most Canadians receive from Canada Savings Bonds. 

Builders are creating jobs, helping the local and national economy.

New pays for new. A lot of people believe that the taxpayer is burdened to pay for new builds - not true. 

They are creating economic expansion that generates additional revenue in order to pay for it.

Misinformed consumers are baited into believing that builder’s greed is the problem. Under site plan control, builders and developers assess all costs related to the development (and more). In the end, the consumer pays for it.

Overregulation has created a big bureaucracy that feeds on itself, increasing cost. At a time of economic uncertainty, high unemployment, and high taxes, additional fees to extend jurisdictions cause a revenue grab and create new revenue streams that allow counties to “double dip,” while Essex County has over $300 million in reserves.

In the end, the builder is the only person who produces a product that the consumer needs. Hiring a consultant gives our political leaders the coverage they need to blame others, while they are the problem.

By expanding the size of the government, you will get more of the same - additional costs and high taxes.

—Frank Cerasa

Amherstburg

Building is an overregulated and complex issue - says reader