A new builders-group study described regulations as a hidden tax on new single-family homes, showing costs spread across permitting, design review, development limits, and codes.
The findings said building code rules were the biggest cost driver, while lot development approvals added major pressure, helping explain why reform efforts focus there.
The study also said regulatory costs were one factor limiting housing supply, alongside tariff increases, labor shortages, scarce lots, and tighter lending.
For policymakers, the takeaway was practical: targeting code reform and streamlining lot approvals could tackle the biggest barriers, while design-review delays offered smaller gains.
Experts said the strongest path is systems-level reform, aligning zoning, codes, infrastructure standards, financing, underwriting, and permitting capacity so local changes can stick.
