White House Seeks Deregulation on Homebuilding to Address Housing Shortage
The U.S. faces a shortage of about 10 million homes, according to a new report from the White House Council of Economic Advisors. Largely responsible for the shortfall is the slower pace of homebuilding since the 2008 global financial crisis, a slowdown the report blamed on local regulations.
The report argues that “increasingly pervasive California-style fees, mandates, regulations and red tape that add expensive government overhead to the cost of building” constitute “the government bureaucrat tax on housing supply.” It cites deregulation as a top priority.
In a statement, the National Association of Home Builders noted that the report cites NAHB regulatory studies. “As added context, the NAHB estimates that the bureaucrat tax constitutes 24% of the cost of a new home,” the White House report said. It also cited a joint study by NAHB and the National Multifamily Housing Council (NMHC) that regulatory costs add an even higher share of 41% for multifamily housing.
Separately, NMHC and the National Apartment Association (NAA) issued a statement applauding the report: “Our organizations appreciate the leadership of this administration on both the pro-housing tax policy in the One Big Beautiful Bill Act and broad-based federal deregulation, crucial parts of any lasting housing solution. Along those lines, the report discusses the perils of overregulation, including rent stabilization and other initiatives that have been proven to make rental housing less affordable.” However, NMHC and NAA called on Congress to remove “damaging language” effectively ending build-to-rent investment from a housing bill currently under consideration.
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