The impact of government on land development and building continues to grow. A Review of Home Construction Costs & Prices Report by the University of Regina Centre for Management Development prepared for the Regina and Region Home Builders’ Association (RRHBA) show that on average, regulations imposed by government at all levels account for 17.6% of the final price of a new single-family home built for sale.
Regulation costs are growing for both the lot and construction of a new home. Some of the costs are indirect such as planning and design overhead fees which account for 1.5% of the price. While other costs are direct such as Service Agreement Fees, permits and materials (to meet Building and Fire Code) account for 6.8%. Taxes account for approximately 9.2% of the regulation cost.
The rapid growth of Regina has increased demands on both planning and municipal services to ensure it can meet current and future needs as well as capacity to support the growing population. This increase in demand is not only for new subdivisions but for the overall city capacity for roads, water & sewer, and all municipal services. These increased requirements for infrastructure and planning add direct and indirect costs to the Builders and ultimately New Home Buyers. With the increased costs for services that benefit all residents, the question remains will New Home Buyers be expected to finance all the costs of infrastructure growth or will all city residents carry a reasonable portion of the cost?