The National Association of Home Builders (NAHB) has called on Congress to address the nation’s housing affordability crisis by reducing regulatory barriers that limit the construction of new homes. Buddy Hughes, NAHB chairman and a builder from Lexington, North Carolina, testified before a congressional panel on housing affordability.
Hughes told lawmakers that removing excessive regulations is essential for increasing the supply of homes for both buyers and renters. He stated, “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. 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.”
He pointed to recent federal actions as examples of regulatory challenges. In April 2024, the Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) issued a final determination requiring new homes financed by these agencies to comply with updated energy codes—the 2021 International Energy Conservation Code (IECC) or ASHRAE 90.1-2019. The Trump Administration postponed enforcement until May 2026.
According to Hughes, mandating these codes would increase housing costs without offering substantial energy savings to consumers. He referenced studies indicating that building to the 2021 IECC could add up to $31,000 to the price of a new home, with homeowners needing up to 90 years to recoup those additional costs through energy savings.
“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,” said Hughes. “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.”
In addition, NAHB raised concerns about other labor rules, HUD regulations, Clean Water Act permitting requirements, and Endangered Species Act rules—all cited as factors contributing further costs that limit needed housing supply.
“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 said.
