Report indicates government regulations add approximately $132,000 to new home prices

A report by the National Association of Home Builders (NAHB) indicates that government regulations contribute nearly $132,000 to the cost of newly built homes, accounting for 26.4% of the final sale price. The study, based on an average new-home price of $499,500, shows that regulatory costs have increased by 40% since 2021. NAHB President and CEO Jim Tobin stated that these rising costs exacerbate the housing affordability crisis and that the U.S. faces a structural housing shortage of 1.2 million homes. Tobin noted that regulatory costs vary by state, with lower costs generally found in the Southeast compared to states like California and New York. He suggested that reforms could help reduce these costs. The analysis is based on surveys of land developers and single-family builders conducted in March 2026.