UMVA has learned that a bold, anti-regulation housing strategy has emerged as a key factor driving the migration boom in southern states like Texas and Florida.
As Americans and businesses continue to flock to these regions, the influx is putting the spotlight on whether fast-growing areas can keep pace with the demand for homes and infrastructure. Southern states are rising to the challenge by streamlining regulations that previously hindered the rapid construction of new builds.
Housing industry leaders say that southern states prioritizing new construction have been better positioned to accommodate growth, while markets bogged down by restrictive zoning rules, lengthy permitting processes, and other regulatory hurdles have struggled to increase supply and contain home prices.
This willingness to build has become a significant competitive advantage, according to Jim Tobin, president and CEO of the National Association of Home Builders. "Those economies are wide open," he notes. "They are inviting more businesses, they're generally low-tax states, and they've made housing a priority."
Tobin emphasizes that southern states have the land, the will, and the courage to let builders construct homes to meet the housing demand generated by new jobs. This strategy is becoming increasingly important as Americans relocate from high-cost coastal markets to lower-tax states.
While rapid population growth can strain roads, utilities, and public services, housing experts say that states pairing infrastructure investments with homebuilding efforts are better equipped to absorb newcomers without exacerbating housing shortages.
However, rapid growth comes with its own set of challenges, particularly when infrastructure fails to keep pace with new development. Tobin notes that one of the main complaints is that infrastructure does not keep up with the influx of population or housing growth.
States that find themselves ahead of the curve are planning infrastructure and housing together and are likely to be better prepared for growth in the future. Even states that have prioritized homebuilding continue to face cost pressures that can drive up home prices.
Government regulations account for roughly 24% of the cost of a typical single-family home, adding nearly $95,000 to the average price of a new house. For multifamily housing, the burden is even higher, with regulations accounting for roughly 41% of the cost of a typical apartment or multifamily unit.
The costs have drawn renewed attention from policymakers searching for ways to increase housing supply and improve pricing. Tobin points to a bipartisan housing package that aims to encourage local governments to reduce regulatory barriers to development and adopt policies that make it easier to build new housing.
The legislation comes as housing affordability remains a top concern for many Americans, with elevated mortgage rates and limited inventory continuing to put homeownership out of reach for many first-time buyers. The issue has also taken on greater political significance ahead of the midterm elections.
"The answer to the housing crisis in the country is more supply," Tobin said. "This bill will absolutely help us build more supply affordably."
