【World Property Journal】U.S. Government Regulatory Costs Add Staggering $93,870 to New Home Prices

According to the National Association of Home Builders (NAHB), regulations imposed by all levels of government account for $93,870, or 23.8 percent of the current average sales price ($397,300) of a new single-family home in 2021.

Of the $93,870 figure, $41,330 is attributable to regulation during development, and $52,540 is due to regulation during construction.

"This study illustrates how overregulation is exacerbating the nation's housing affordability crisis and that policymakers need to take bold steps to reduce or eliminate unnecessary regulations that will help builders increase the production of quality, affordable housing to meet growing market demand," said NAHB Chairman Chuck Fowke.

Of note, the study on the cost of regulation does not take into effect how rising lumber and other material prices over the past 12 months have raised housing costs. NAHB completed another report last month which shows rising lumber prices that have soared more than 250 percent since April 2020 have added $35,872 to the price of a typical new home. This figure is on top of the $93,870 cost due solely to regulation.

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