Government regulations are adding nearly $132,000 to the cost of newly built houses, according to a new report released as Americans struggle to become homeowners.The findings that more than one-quarter of the final prices of newly constructed homes come as housing affordability remains a top concern nationwide, with elevated mortgage rates and limited inventory putting homeownership out of reach for many families.The issue is also expected to be a key focus heading into the 2026 midterm elections, as lawmakers face growing pressure to address high housing costs and the affordability crisis overall.AMERICA'S HOUSING MARKET COULD RUN OUT OF SOMETHING MORE IMPORTANT THAN HOMESHousing industry leaders say states that have prioritized homebuilding have been better positioned to accommodate population growth and economic expansion.(Joshua Lott/Bloomberg/Getty Images)The National Association of Home Builders (NAHB), which commissioned the report, argues that regulations imposed by federal, state and local governments have become a major driver of the nation's housing shortage and affordability challenges.The study found regulations add an average of $131,734 to the cost of a newly built home, representing 26.4% of the final sale price.
The estimate, based on the average new-home price of $499,500, marks the largest increase between consecutive NAHB surveys since the organization began tracking the data in 2011.Regulatory costs have climbed a whopping 40% since 2021."We update our study every five years and this reinforces what we have been saying all along — that the cost to build a single-family home in this country continues to escalate and exacerbate the housing affordability crisis," NAHB President and CEO Jim Tobin told Fox News Digital."We're up 40% over the last five years, and now regulatory burdens at every level of government are totaling more than $130,000 for the cost of a new home."NAHB estimates the U.S.
faces a structural housing shortage of 1.2 million...