Excessive regulations are one of the largest barriers to residential building and add significant costs before construction even begins.

According to recent NAHB research, local, state, and federal regulations account for $131,734 (or 26.4%) of the price of the average new single-family home built for sale, including more than $46,000 for zoning approvals, compliance fees, studies, and other requirements.

The federal 21st Century ROAD to Housing Act, which went into effect in July, targets these barriers to help increase housing supply across the country.

The new law features more than 50 provisions that address zoning and land use issues, environmental reviews, and other obstacles that delay projects and increase costs.

Land Use and Zoning

Section 209 of the law, the Accelerating Home Building Act, establishes a grant program to help local governments adopt pre-approved designs or “pattern books” for small-scale, mixed-income projects like townhomes, duplexes, or ADUs.

By allowing participating communities to pre-review standardized designs, the program aims to reduce design costs, eliminate repetitive reviews, and make permitting more predictable—ultimately saving more than $10,000 on the price of a new home. Projects would still need to satisfy applicable site-specific zoning and permitting requirements.

The program must still receive congressional appropriations and be implemented by the U.S. Department of Housing and Urban Development (HUD), but builders and developers can begin engaging with state and local officials now so their communities are prepared to participate when federal funding becomes available.

In addition, Section 107, the Housing Supply Frameworks Act, directs HUD to develop national best practices for land use and zoning reforms. If state and local governments adopt these voluntary practices, the result could create more buildable lots, improve approval timelines, and reduce regulatory costs.

By law, HUD is required to include home builders and market-rate, affordable, and manufactured housing developers on the task force to create these frameworks.

RELATED CONTENT:

• Landmark Housing Bill Becomes Law
• What’s Next for the ROAD to Housing Act?
• What’s in the 21st Century ROAD to Housing Act? (Bipartisan Policy Center)

Environmental Reviews

Lengthy National Environmental Policy Act (NEPA) reviews can be burdensome and delay development, even for projects with limited environmental impacts.

Section 206 of the new housing law, the Unlocking Housing Supply Through Streamlined and Modernized Reviews Act, simplifies reviews to shorten timelines for small, midsized, and infill projects.

This provision matters because the average permit-to-completion time for single-family homes was 8.8 months in 2025, 1.6 months longer than average in 2015, according to NAHB analysis of the most recent U.S. Census Bureau data.

The new law reduces delays by eliminating duplicative, time-consuming reviews so projects can move faster and cost less.

Stay Engaged Locally

The 21st Century ROAD to Housing Act is an important step toward making housing easier to build and buy, but it is not a cure-all for the nation’s estimated 1.2 million-home shortage. Many of the provisions in the bill will take months or even years to implement.

Housing industry professionals should remain engaged with HUD and other federal agencies during implementation while encouraging state and local governments to pursue available grants and consider the voluntary reforms supported by the law.