40% of the cost of housing simply comes down to government regulations and red tape. That was one of the major takeaways during my recent chat with a great Bozeman, Montana homebuilder- Eugene Graf.

Graf is a former President of the Southwest Montana Building Industry Association and the Montana Building Industry Association. Given all of the news coverage that housing has been getting during this 2024 election cycle, why not actually hear from someone who actually builds housing?

Eugene Graf: "I go back to the Great Recession. We stopped producing housing because we couldn't afford to build homes, and people couldn't afford to buy them. But over that time period, we've not built enough homes for the last 15 years, 15-16 years. And so we have a glut of housing, a shortage of housing of three to 5 million homes across the country. And so until we catch up with supply, the cost is just going to keep going up."

Graf tells us that 40% of the cost of housing is government regulation (especially at the local municipal level). That's why he was pleased to see Governor Greg Gianforte (R-MT) press for reducing red tape and regulations that impact the ability to build more housing. Graf also served on the governor's housing task force.

Eugene Graf: "One of the solutions that I kind of push back on all the time is people putting money towards the solution instead of getting to the problem and fixing the problem at the source. And so, you can push money, it's just going to cost all of us more money, and maybe incrementally decrease the shelter cost. But until you fix the problem, the regulatory burdens of producing housing, you're not going to find a solution to affordability."

Here's the full audio of our recent chat with Eugene Graf:

LOOK: The priciest home for sale in every U.S. state

From vast expanses to explore in the West to "cozy" beach retreats in the East, get ready to be dazzled by the opulence of the most luxurious real estate across all 50 states. We've ranked them from the least expensive (a bargain at $3,095,000!) to the most expensive. Simply tap or click on the photo to see more of each home, or if you're feeling extravagant, book a viewing.

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