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NAHB chairman Buddy Hughes recently testified at a congressional panel hearing focused on housing affordability, urging policymakers to eliminate excessive regulations that are preventing builders from increasing the housing supply.
Hughes said to ease housing constraints for home buyers and renters, it is essential to eliminate excessive regulations that hinder the construction of new homes and apartments.
“Regulations account for nearly 25% of the cost of a single-family home and more than 40% of the cost of a typical apartment development,” says Hughes. “The time and costs associated with complying with a multitude of government regulations can be significant for small- and medium-sized builders and ultimately limit housing supply.”
Increased regulations are impeding the ability of builders to boost housing production. In particular, Hughes cited an April 2024 final determination by the Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) that required new single-family and multifamily homes financed by these agencies to comply with the 2021 International Energy Conservation Code (IECC) or ASHRAE 90.1-2019, respectively. The Trump Administration has delayed the effective date for both single-family and multifamily housing until May 2026.
“NAHB urges Congress and the administration to prohibit HUD and USDA from enforcing a minimum energy standard that increases housing costs during a nationwide affordability crisis,” Hughes says. “We also urge policymakers to respect state and local authority over code adoption and to reject mandates that most states have not determined are appropriate for their communities.”
Builders and developers face a key challenge in sourcing domestically for production for multifamily projects with federal assistance.
“While our members try to use products made within the U.S., it’s not always practical because of price or availability,” Hughes says. “Multifamily housing needs an exemption from this requirement to help avoid construction delays and additional costs.”
Hughes also cited labor regulations such as the Davis-Bacon Act, which add to housing costs by requiring prevailing wage rates for construction projects. These are based on union wage rates that do not reflect local market conditions. On top of higher labor costs, builders face extensive paperwork, weekly payroll certifications and compliance risks.
“NAHB looks forward to working with policymakers to enact sensible regulatory reforms to help break the rising housing cost curve and allow builders to produce more attainable, affordable housing,” Hughes says.
