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THAT is almost always the real problem. Yet again few want to see or hear it. While back in SanFran they looked into building public toilets for the "homeless". After spending enough money to buy a lot of homes they came to the conclusion it would be about a million bucks each to build them so said no. So an NGO offered to make them for free. Then they found out the permitting process would end up costing 1 million each for the free toilets to be put in. Yet the people who live there hear this, then vote for more of it and wonder why it gets worse.Much of it is the old maxim of govt. "Nationalize the profit, socialize the debt".
(IIRC,) ~20% of the cost of building housing is directly related to regulatory costs that are all passed on to the buyer.

