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A core concern raised was whether the ability to turn a profit is hindering new home construction. Warren confirmed that financial viability is crucial; without the prospect of making a profit, developers and builders won’t undertake risky projects.
She pointed out that construction costs have surged by over 20% in recent years. This increase has led to a decline in private investment, as many builders are operating at or near loss in hopes of eventual turnover. For housing shortages to be addressed effectively, private investment must be revived. She argued that policy reforms—such as simplifying planning approvals, establishing sensible building codes, and ensuring utilities at sites—are necessary steps to facilitate more development.