By National Association of Home Builders
A new study by the National Association of Home Builders (NAHB) finds that regulations at the federal, state and local levels add $131,734 to the cost of a new single-family home—26.4% of the average sales price of $499,500 as of January 2026.
Breaking down the total regulatory costs further, the study revealed that $84,939 of the final house price is the result of costs incurred by the builder due to regulation during the construction phase of the home while $46,795 is attributable to regulation during land development.
“This study illustrates how excessive regulation is deepening the nation’s housing affordability crisis and making it harder for builders to deliver the affordable, attainable housing that our nation sorely needs,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio. “Policymakers should remove unnecessary and costly regulations that are pricing buyers out of the market and slowing construction of new homes and apartments.”
