Federal Regulatory Reform

Contacts: Michael Mittelholzer
[email protected]
AVP, Environmental Policy
(202) 266-8660

Alex Strong
[email protected]
Senior Director, Federal Legislative
(202) 266-8279

Excessive regulations are contributing to the housing affordability crisis. On average, regulations imposed by government at all levels account for nearly 25% of the price of building a single-family home and more than 30% of the cost of a typical multifamily development. NAHB believes that Congress must reassert its oversight authority over rulemaking agencies and that efforts to further regulate the housing industry must be subject to greater public scrutiny and based on sound data.

Policy Statement

NAHB supports federal efforts to address overly burdensome regulations, especially those that impact small businesses, and to ensure greater transparency and accountability in the federal regulatory process.

Why It Matters

As increasingly complex regulations are layered over existing ones, the growing mountain of red tape generates skyrocketing compliance costs that stifle business initiative and harm consumers. The housing industry provides a good example. On average, nearly 25% of the cost of building a typical new single-family home – almost $94,000 – is attributable to government regulation. According to NAHB research, approximately 14 million American households are priced out of the market for a new home by government regulations.


Three key reforms can fix the broken regulatory rulemaking process:

  1. Restore congressional oversight to the rulemaking system;
  2. Ensure rulemaking agencies consider the disproportionate impact rules have on small businesses; and
  3. Reconsider the rulemaking process.

Reasonable regulations are essential to protecting the health and safety of workers, the environment and financial institutions, but they must strike a balance. Federal regulations must be carefully structured to achieve their intended benefits while minimizing the burdens on small businesses. 

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