Why Is It So Expensive to Build Here?

“At a housing task force convened by Mayor Lee, in which SPOSFI will participate, developers stated and no one disputed that the cost of building a unit of housing has increased from $400,000 to $800,000 in just four years.  The planning and approval process alone takes an average of four years, with no guarantee that approvals will be granted and that the homes will actually be built.  For developers, the stakes can change at any time if political decisions after the percentage of “affordable” units they, and ultimately the market-rate purchasers, are required to fund.” (Apartment Owners Association of California, March 1, 2016)