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Lexington Today
By the People, for the People
Home Builders Urge Congress to Ease Regulatory Burdens
NAHB says excessive 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.
Published on Feb. 25, 2026
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The National Association of Home Builders (NAHB) has urged Congress to eliminate excessive regulations that are preventing builders from increasing the housing supply and addressing the nation's housing affordability crisis. NAHB Chairman Buddy Hughes testified that regulations account for a significant portion of the costs of new home and apartment construction, impeding builders' ability to boost housing production.
Why it matters
Housing affordability has become a major issue across the country, with the costs of new construction making it difficult for many Americans to purchase or rent homes. NAHB argues that reducing regulatory burdens could help builders increase the housing supply and make homes more attainable.
The details
According to NAHB, 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 group cited several specific regulations as problematic, including overly stringent energy code requirements, domestic sourcing mandates for multifamily projects with federal assistance, and the Davis-Bacon Act, which requires prevailing wage rates for construction projects. NAHB says these regulations add significant costs and paperwork burdens for builders, especially smaller firms.
- In April 2024, the Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) issued a final determination requiring 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.
- The Trump administration has delayed the effective date for both single-family and multifamily housing until May 2026.
The players
Buddy Hughes
Chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Lexington, North Carolina.
National Association of Home Builders (NAHB)
A trade association representing the home building industry in the United States.
What they’re saying
“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.”
— Buddy Hughes, Chairman, National Association of Home Builders (rockproducts.com)
“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.”
— Buddy Hughes, Chairman, National Association of Home Builders (rockproducts.com)
What’s next
The Trump administration has delayed the effective date for the new energy code requirements until May 2026, giving Congress and the administration time to potentially prohibit HUD and USDA from enforcing these standards.
The takeaway
Reducing regulatory burdens on home builders could help increase the housing supply and improve affordability, but policymakers will need to balance this goal with other policy priorities like energy efficiency and worker protections.
