A new National Association of Home Builders study finds that government regulations now account for more than $132,000 — or 26% — of the average new single-family home. That’s a 40% increase from 2021 and more than double since 2011. The largest single regulatory cost driver is changes in building codes over the past decade, which add more than $40,000 per home. Regulatory burdens join tariffs on building materials, skilled labor shortages and tight lending conditions as key factors limiting housing supply, particularly for entry-level buyers.
