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Preapproved Plans Tame Housing Costs

New York Times Business •
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Communities nationwide are adopting preapproved housing plans to combat soaring construction costs and lengthy permitting delays. These architect-designed blueprints, offered free or for a small fee, shave weeks off approval processes while saving builders as much as $10,000 in upfront development costs, according to Pew Charitable Trusts research.

With national new home construction averaging $428,000, these programs represent a pragmatic solution to affordability crises. Washington State studies show each month of delay increases building costs by 1%, while NYC delays can add $50,000 per unit to midrise apartments. The approach has gained bipartisan support, with the House recently passing legislation that would fund local adoption of these designs.

At least 40 communities now offer preapproved plans, including Claremore, Okla., Kalamazoo, Mich., and South Bend, Ind. The House has voted to pass related legislation, which now awaits Senate approval. Public support for permitting reform stands at 86%, as communities recognize their direct control over regulatory processes represents one of the few levers they can pull to address housing supply issues.