A new study from the National Association of Home Builders (NAHB) analyzed homebuilding regulatory costs, comparing results from the 2026 survey to a previous one conducted in 2021. The 2026 survey revealed that, on average, regulations imposed by the government at all levels account for $131,734, or 26.4%, of the final price of a new single-family home built for sale. Of this amount, $46,795 is due to a higher price for the finished lot, a direct result of regulations imposed during the lot’s development. The remaining $84,939 is the result of regulatory costs imposed on the builder during construction, after the builder purchases the finished lot.
According to the study, regulatory costs are one of several factors, including record increases of tariff rates on building materials, ongoing skilled labor shortage, a decrease in available lots and tighter lending conditions, currently limiting the supply of housing, particularly housing for the entry-level market.
