The American Elevator Explains Why Housing Costs Have Skyrocketed

The rising costs of housing in the United States can be partially attributed to the complexities surrounding elevator construction, which reflect broader issues in the construction industry. The author, Stephen Jacob Smith, highlights how American elevators have become overly engineered and expensive due to a combination of outdated regulations, labor shortages, and a lack of political will. In contrast to countries like Switzerland and Spain, where elevators are more affordable and commonly included in smaller buildings, U.S. developers often avoid adding elevators due to high costs, which can reach $158,000 for a basic model in New York City.

The regulatory environment in the U.S. complicates matters further, with numerous local jurisdictions modifying elevator codes, leading to inefficiencies and increased costs. Labor shortages, exacerbated by restrictive immigration policies, have also driven up construction costs, particularly for multifamily housing. The construction industry has become fragmented, with single-family homebuilders more effectively lobbying for favorable regulations compared to multifamily developers.

Recent movements advocating for more housing development, such as the YIMBY movement, have begun addressing zoning laws, but significant hurdles remain in building codes and standards. To alleviate the housing crisis, the author suggests adopting European elevator standards, reforming labor policies, and improving vocational training. Ultimately, a reevaluation of the construction regulatory framework is necessary to make housing more affordable and accessible in the U.S.