What NAHB estimated
The National Association of Home Builders estimated that federal, state, and local regulatory costs represented $131,734, or 26.4%, of the $499,500 average price used in its January 2026 new-home analysis. NAHB attributed $46,795 to land development and $84,939 to construction.
Why attribution matters
This is an industry-group study based on surveys and modeling assumptions, not a government audit of every home. It applies to an average new single-family home built for sale under the study methodology. Local costs can differ substantially.
NAHB itself says the study is not arguing that all regulation is bad or should be eliminated, and it does not estimate what share may be excessive. Some rules can also create safety, durability, environmental, or public-infrastructure benefits.
How readers can use the estimate
Treat the figure as one input when evaluating housing supply and policy. For a personal purchase, use the actual price, taxes, insurance, financing, maintenance, location, and expected holding period—not a national average.
Sources and methodology
Checked August 26, 2026. Survey findings describe the named sample, not every person in a generation or population. Limits, rates, market facts, and program rules can change.
Educational information only. This is not individualized financial, investment, tax, legal, medical, or mental-health advice. Verify current rules and consider an appropriately licensed professional for decisions specific to you.
