HUD released a State and Local Best Practices for Home Construction report with recommended policy changes for state and local governments. The recommendations target permitting fees, building codes, land-use limits, and inspection timelines that add costs and risks to new-home projects. The report is intended to implement a March 13, 2026 executive order directing HUD to outline recommended permitting and zoning practices within 60 days. The recommendations align with broader local regulatory reforms such as transit-oriented development, mixed-density zoning, single-room occupancy legalization, and reduced minimum lot size requirements. HUD cited regulatory costs exceeding $100,000 per new single-family home and green energy mandates adding up to $30,000. HUD projected $212 billion in savings from 2025 deregulation measures and listed prior actions including rescinding the 2021 energy conservation code and rolling back certain FHA rules.
"HUD's new State and Local Best Practices for Home Construction report offers a set of recommended policy changes that target permitting fees, building codes, land-use limits and inspection timelines that add costs and risks to new-home projects."
"HUD cited data that regulatory costs now contribute more than $100,000 to the final price of a new single-family home, and that certain state and local green energy mandates can add up to $30,000 to construction costs."
"It projects that deregulation measures taken in 2025 will ultimately save Americans a combined $212 billion. Since Trump took office last year, HUD said it has: Rescinded the 2021 International Energy Conservation Code Ended the Obama-Biden-era Affirmatively Furthering Fair Housing rule Rolled back rules within the Federal Housing Administration's single-family mortgage insurance program it characterized as onerous"
"HUD Secretary Scott Turner, in a statement, framed the report as a clear starting point for states and municipalities to take inventory of their regulations and policies and make changes that will lower the cost to build and enable more efficient housing supply growth."
Read at www.housingwire.com
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