Permitting Costs Account for 40% of Homes—House Rep Zinke Demands Immediate Action

House Representative Ryan Zinke said that streamlining home permits could dramatically lower construction costs and make homeownership attainable for millions of Americans. In a recent interview, Zinke argued that red tape—not just lumber and labor—is a major barrier to affordable housing. He highlighted permitting as a critical cost driver, noting it accounts for up to 40% of the final price in some cases—far exceeding labor costs at 14%.

“If you look at the permitting, 40%, even if you cut it in half from 40% to 20%, that’s a huge, huge difference,” Zinke said.

The House-passed Affordable Homes Act, which Zinke endorsed, aims to speed up construction timelines and reduce holding costs for builders. He emphasized that modest reductions in permitting expenses could determine whether first-time buyers or working families qualify for mortgages.

Zinke also stressed the role of interest rates in affordability, stating: “When interest rates go down one or two points, it could be half your mortgage.” Additionally, he linked energy prices and trade policy to broader economic health, noting that falling energy costs and tariffs leading to stable supply chains are key to a stronger economy.

“Making the economy ‘feel better’ starts with lower costs families encounter every day,” Zinke added. With home prices still elevated and borrowing costs pressuring budgets, Zinke described the Affordable Homes Act as a practical step that could expand housing opportunities for American families through reduced permitting burdens, lower interest rates, and improved economic conditions.