Government Rules Add More Than One-Quarter of New Home Price: Study

Builders say rising compliance costs are slowing construction and making the housing affordability crisis worse.

Construction workers build a home at a new housing development in Hercules, Calif., on July 1, 2025. Justin Sullivan/Getty Images

Government regulations add more than $130,000 to the cost of a newly built single-family home in the United States, according to a new study published this week by the National Association of Home Builders (NAHB).

Regulatory costs at the federal, state, and local levels now account for 26.4 percent of the average sales price of a new home, which is ultimately passed on to buyers and further squeezes affordability, the study found.