My colleague Alan Nevin provides a much-needed clarity to understanding the development challenges in San Diego in this piece, which originally appeared in the Daily Transcript. There is a study yet to be published that found that up to 39% of the cost of a residential housing unit in the San Diego region is strictly due to regulatory fees.
I recently completed a market study on a property in Placer County, immediately northeast of Sacramento. The property, immediately west of Roseville, contains 5,000 acres and is destined to have 14,000 housing units.
Placer County has been a cheerleader for the development of the property and has worked diligently for its approval as a master-planned community.
Processing on the property started in 2007 and if everything goes right, the first home could break ground in 2017. One wonders why it takes 10 years to approve a project if the local government is in favor of it.
The answer lies in increasing bureaucracy at all levels of the development process.