Regulatory Costs Jump 40% in Five Years – and Add to the Price of a New Home

(6/9/26)  If you’re thinking about purchasing a newly constructed home, prepare yourself for sticker shock. In addition to the rising costs of labor and materials, regulatory costs at the federal, state and local levels have added $131,734 to the cost of a new single-family home, according to a new study by the National Association of Home Builders (NAHB). That’s 26.4 % of the average sales price of $499,500 as of January 2026.

That’s why NAHB is advocating for the reduction or elimination of regulatory fees, which it claims will lower the cost of new construction.

“This study illustrates how excessive regulation is deepening the nation’s housing affordability crisis and making it harder for builders to deliver the affordable, attainable housing that our nation sorely needs,” said Bill Owens, NAHB chairman and a home builder and remodeler from Worthington, Ohio, in a written statement.

Of the regulatory fees home builders pay, NAHB found that $46,795 is attributable to regulation during the development stage, while $84,939 is due to regulation during construction.