Local developers say cities' regulations drive up starter home costs
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Illustration: Maura Losch/Axios
Local developers say they could build more affordable housing at a faster pace if metro cities eased zoning and regulatory processes that don't compromise safety or building integrity.
Why it matters: People want to move and work in the Des Moines metro, but low- and middle-income people are struggling to find affordable rents and mortgages — including teachers, child care workers and retail staff.
Driving the news: Polk County Housing Trust Fund and regional planning group Capital Crossroads released a September report on developers' perspectives for "workforce housing attainability."
- They found that developers are getting tied up in repetitive approval processes that slowed construction. Regulations like lot size, aesthetic and material requirements — such as rules on vinyl siding — also added to costs, the report says.
- "Is the trade-off worth it between having design standards that make the house really pretty, but that means that people can't buy that house?" Matt Hauge of Polk County Housing Trust Fund, tells Axios.
Context: The average median income for a four-person household in Polk County is $113,000, Matt Hauge of the Polk County Housing Trust Fund tells Axios.
- People who need affordable "workforce housing" are low- to middle-income earners — households earning 120% to 60% or below the median income average.
Between the lines: Buying existing homes has long helped new buyers afford houses, but Hauge says that since 2020, rising prices and interest rates have kept homeowners in place, which is limiting inventory.
- And in fast-growing suburbs like Waukee and Ankeny, the only single-family homes available are newer and more expensive than neighboring cities' more affordable older homes.
The other side: Current homeowners typically want to keep zoning rules and regulations in place to help preserve the value of their homes, as well as the feel of their neighborhoods.
- In 2019, Des Moines approved a zoning overhaul to require larger homes, garages and space between properties to help keep property valuations up, the Register reported.
- Zoning requirements give current residents some protections and ensure there's predictability over what is built next to them, city officials said at the time.
The bottom line: Developers in the report say there are costs in city requirements like home sizes, garages and even basements, and re-examining these may help make homes more attainable.
- "It's less affordable to buy a home in greater Des Moines than at any point in my lifetime," Hauge says.