Apartment developers are subject to a variety of regulations at all levels of government. According to research by the National Association of Home Builders (NAHB) and the National Multifamily Housing Council (NMHC), the regulation imposed by all levels of government accounts for an average of 40.6% of multifamily development costs. The highest average cost is the result of changes to building codes over the past ten years. So, are codes making projects more expensive?
As a result, apartment development can be subject to a significant array of regulatory costs, including a broad range of fees, standards, and other requirements imposed at different stages of the development and construction process.
Did you know: Regulations cover a wide range of issues, and while they may be well-intentioned, the costs and burdens of any regulation must be carefully weighed against the benefits. For example, some regulatory mandates can discourage developers from building in the very marketplaces with the greatest need for more housing.
About 48% of multifamily developers said they avoid building in jurisdictions with policies such as inclusionary zoning, and 87.5% said they avoid building in a jurisdiction with rent control.
Can you control this? No!
We realize this makes development challenging, but here are some things you can do to keep your project budgets in check.
What can you do about it?
As a developer, you want to make your project more efficient!
Here are some other ideas:
- Focus on building in development-friendly jurisdiction
- Work with an experienced MEP & structural engineering firm
- Partner with a design team that works in Revit
- Rethink traditional building methods by exploring all material and construction types
- Infuse prefab and offsite design
- Building faster means a quicker path to revenue and reduced financing carry
BASE4 is here to help!
We focus on Cheaper and Faster Construction through design! Our team works with developers and general contractors to rethink traditional building methods by infusing innovative technology, forward-thinking design, and offsite manufacturing principles to build projects CHEAPER and FASTER!
We at BASE4 believe in a PRODUCT mindset—bringing standardization and manufacturing principles to an outdated system.
- We perform all services in-house, including architecture, structural engineering, MEP engineering, interior design, 3D BIM visualization, and construction administration.
- With the product-centered approach, we continually optimize the build process, building faster, cheaper, and more efficiently.
- The BASE4 team has worked around the globe, providing a wide range of expertise in quality standards, specifications, and international best practices for design.