Government regulations imposed by federal, state and local authorities now add nearly $132,000 to the price of a newly built home in the United States, according to a report commissioned by the National Association of Home Builders (NAHB). The finding matters because housing affordability has become a top national concern, with high mortgage rates and limited supply already pricing many families out of homeownership, and it is expected to feature heavily in the run-up to the 2026 midterm elections.

The study found that regulation adds an average of $131,734 to a new home, or 26.4% of the average sale price of $499,500 — the largest jump between consecutive NAHB surveys since tracking began in 2011, with such costs rising 40% since 2021. NAHB President and CEO Jim Tobin argued these burdens worsen a structural shortage of about 1.2 million homes, and noted regulatory costs are generally lower in south-eastern states such as Texas, Florida and the Carolinas than in California, New York, New Jersey and Illinois.