Why New Houses Cost So Much

National Wildlife, Oct-Nov, 2000

Don't blame the high cost of your new home on regulations related to the Clean Water Act, the Endangered Species Act or other environmental legislation. "We find that the costs of complying with the regulations have only a negligible impact on the average price of a new home," says Cornell University environmental analyst Joseph Laquatra, part of a research team that reviewed scores of studies on the subject and conducted two focus groups. "Rather, we conclude from strong evidence that higher prices are much more likely the result of building bigger homes with more amenities."

The average cost of a new home in the United States has skyrocketed 32 percent in 10 years. The Cornell researchers found that although builders may incur some extra costs to comply with environmental codes, nationally such costs don't significantly affect the cost of new houses. Adds Laquatra, "We also found evidence that the public is overwhelmingly in favor of environmental protection and thinks the government should be spending even more on protecting the environment."