Why Are New House Prices So High, How Are They Influenced by Government Regulations, and Can Prices Be Reduced?

Some housing officials have suggested that the American dream of owning a house may be vanishing because the median selling price of houses in 1976 hit an alltime high of $44,300, and the average selling price by the end of 1976 reached $51,000. Increased costs associated with government regulations, materials, labor, financing, property taxes, and utilities have contributed to higher housing prices and a decline in housing affordability. Many young, middle-income, and first-time home buyers can no longer afford to buy an existing house.