As housing affordability continues to challenge buyers across Georgia and the nation, a new study from the National Association of Home Builders (NAHB) highlights a growing contributor to rising home prices: regulation.
According to the report, federal, state and local regulations now add an average of $131,734 to the cost of a new single-family home, representing 26.4% of the average new-home sales price of $499,500.
The findings reinforce concerns raised by the Georgia Residential Land Development Coalition (GRLDC), which has been advocating for permitting and development reforms designed to reduce delays, lower costs and increase housing supply throughout the state.
Of the total regulatory burden identified by NAHB, $46,795 stems from regulations tied to land development, while $84,939 is attributed to requirements imposed during home construction. The study found that regulatory costs have increased more than 40% since 2021, rising from $93,870 per home to $131,734 today.
For GRLDC members, these costs are not simply theoretical. Delays in permitting, inconsistent review processes and prolonged approvals can add significant carrying costs to development projects, ultimately increasing the price paid by homebuyers and renters.
The coalition recently championed Georgia’s permitting reform legislation, SB 447, which establishes clearer review timelines and greater accountability for local governments. GRLDC is also pursuing additional reforms, including efforts to streamline final plat approvals and standardize bonding requirements across jurisdictions.
“Every unnecessary delay and added layer of bureaucracy increases the cost of housing,” said Jay Knight, GRLDC Chair in discussing the coalition’s ongoing reform efforts. “When projects are slowed by administrative hurdles, those costs eventually make their way into the price of a home.”
NAHB Chairman Bill Owens echoed similar concerns in the national report.
“This study illustrates how excessive regulation is deepening the nation’s housing affordability crisis and making it harder for builders to deliver the affordable, attainable housing that our nation sorely needs,” Owens said.
The report also notes that while regulatory costs have climbed more than 40% over the past five years, U.S. disposable income has increased just 18.3%, meaning housing-related regulatory costs are growing more than twice as fast as consumers’ ability to pay.
As Georgia continues to experience strong population growth and housing demand, industry leaders say addressing unnecessary regulatory barriers will be critical to improving affordability and ensuring enough housing is available to meet future needs.
The full study is available through NAHB.
