Government Standards Enhance Quality and Value of New Homes

Government regulations add about $132,000, or 26.4%, to the cost of a typical new single-family home, worsening housing affordability. Regulatory costs have risen 40% since 2021, with building code changes adding the largest burden. Delays and extra development standards are common, contributing to a housing shortage of 1.2 million homes. Builder confidence remains low, with many cutting prices and offering incentives.