Regulation most certainly increases construction costs. Safety features will definitely increase cost. So does environmental compliance. I don't necessarily think those are bad things, but they definitely increase costs.
From the article:
"These energy rules reflect an important priority for Californians, but they contribute to staggering construction costs and, in turn, higher house prices. Affordable housing builders spend $400,000 per unit, on average, for new housing in Los Angeles, more than any other city in the country. State energy standards contribute to this cost."
In practice, we’re trying for perfect over good. Let’s say I’m a low income family and I’m trying to buy a house. Adding 10% might price me out of the new market and into an older house. Yes, the goal was to give people more insight into recurring costs, but now you’ve pushed them into older stock that may have maintenance costs that are an order of magnitude higher than the electric bill.
From the article:
"These energy rules reflect an important priority for Californians, but they contribute to staggering construction costs and, in turn, higher house prices. Affordable housing builders spend $400,000 per unit, on average, for new housing in Los Angeles, more than any other city in the country. State energy standards contribute to this cost."