The U.S. House Committee on Financial Services held a hearing on ways to increase housing development and support housing providers, with members and witnesses focusing on how regulatory requirements can raise construction costs, slow project timelines, and constrain competition and supply. Committee members highlighted a patchwork of federal, state, and local zoning, permitting, and building rules as a key driver of delays and higher prices, alongside federal energy mandates that were described as adding significant compliance costs to new single-family construction. Participants cited estimates that government regulations add nearly USD 94,000 to the price of a new single-family home and pointed to supply gaps of 5 million to more than 8 million housing units nationally, despite over USD 1.2 trillion in US Department of Housing and Urban Development program spending since 2000. Witnesses called for policies that boost production and rehabilitation or adaptive reuse of existing properties, improve the investment case for multifamily housing amid high interest rates and regulatory risk, and enable more homes on smaller lots, with one witness estimating that modest lot-size reductions since 2000 could have yielded roughly 9 million additional homes priced about 15–20% lower.
U.S. Financial Services Committee 2025-12-03
U.S. House Committee on Financial Services holds hearing on regulatory barriers to affordable housing supply
The U.S. House Committee on Financial Services held a hearing on increasing housing development, focusing on how regulatory requirements elevate construction costs and delay projects. Members highlighted the impact of federal, state, and local zoning and building rules, estimating that regulations add nearly USD 94,000 to new single-family home prices. Witnesses advocated for policies to boost housing production, adaptive reuse, and multifamily investment, noting potential supply gaps of 5 to 8 million units.