Press Releases

Today, the House Committee on Financial Services, led by Chairman French Hill (AR-02), held a hearing to explore ways to boost housing development and improve support for housing providers, focusing on regulations that raise construction costs, limit competition, and slow industry growth.

On Affordability Restrictions Facing Americans:

Chairman Hill (AR-02) said, “Our goal today is to chart a path toward greater development capacity and a simplified regulatory framework. Regulatory complexity, particularly those locally designed and approved rules, remains a significant obstacle for property owners and builders, complicating the development process and often resulting in delays and increased expenses. Rather than helping development, overburdensome building regulations have made it nearly impossible for many housing providers to navigate a maze of federal, state, and local rules, leading to less housing development across the nation.”

“Earlier this year, the National Association of Realtors, or NAR, released its housing affordability and supply report, which found that while housing inventory is increasing, middle-income buyers are still having difficulty finding an affordable home. This difficulty was especially pronounced for prospective homebuyers making less than $75,000, who, according to this report, have seen little to no benefit from rising supply. In 2024, the St. Louis Federal Reserve reported that the median household income in Missouri was $78,390, just over the threshold where affordable housing becomes nearly inaccessible,” said Subcommittee on Capital Markets Chair Ann Wagner (MO-02).

On Regulatory Obstacles to Producing Affordable Homes:

“Over the past decade, housing affordability has become one of the most urgent challenges facing American families. The nation has not built enough homes to meet demand and rising costs, combined with a complex web of federal, state, and local regulations, have made it increasingly difficult for both builders and families. As I continue to meet with realtors, builders, and housing providers, I hear consistent concern, a patchwork of zoning rules, permitting requirements, and development restrictions, and they vary widely from one jurisdiction to another. This regulatory maze slows construction, increases costs, and limits the supply of attainable homes. Without a more consistent and predictable framework, we risk deepening an already severe shortage and placing even more families out of reach of homeownership or affordable rental options,” said Rep. William Timmons (SC-04).

Rep. Roger Williams (TX-25) said, “…federal energy mandates have introduced significant compliance costs to the home building process, especially for new single family builds. The cumulative effect of these standards can be substantial, often raising the price of a home by tens of thousands of dollars, placing a steep burden on first time homebuyers. … For many families, these added costs shut them out of the dream of home ownership. In addition to homebuyers, builders are also report that the added complexity of these standards slows projects down, reducing the number of homes they can build.”

“I think [the conversation] has gone away from the problems that we had with supply chain to actual rules and regulations … is the problem. Certainly, if you look at industry data, it says that government regulations add nearly $94,000 to the price of a new single family home,” said Rep. Pete Sessions (TX-17).

On What’s Fueling Higher Housing Costs:

“For many, it is the most difficult time to purchase a home in a generation. At the heart of this crisis is supply. We are probably over 8 million units underbuilt nationwide, at the moment. This is despite massive federal spending to support housing, over $1.2 trillion spent on programs run by HUD since 2000. It is going to take a serious re-evaluation and reform of our federal involvement in housing to actually focus on the substantive issue which is supply,” said Rep. Mike Lawler (NY-17).

Rep. Monica De La Cruz (TX-15) stated, “Where I live, which is in deep South Texas, affordability, and specifically, housing affordability, is at the top of their minds, especially for the young families and young adults that are getting to that age of beginning their life and a new family. Affordability is something that we must tackle. Unfortunately, consumers looking to buy or rent are being hurt by all angles. The primary driver to housing costs have been the decades of underdevelopment that has left us short 5 million housing units.”

Witnesses Echoed the Work of the Committee:

Mr. Kevin Sears, Immediate Past President, National Association of Realtors said, “Addressing the housing supply crisis requires federal action that incentivizes solutions at every level of government and across the private sector. NAR supports proposals that will boost supply and expand access to affordable housing for families at all income levels, whether they are seeking to buy their first home, find quality rental housing, or remain in homes they already own. We urge Congress to advance policies that increase housing production and encourage rehabilitation and adaptive reuse of existing properties, and support innovation in construction methods and housing types. Many of these ideas have bipartisan support in both chambers, including provisions in the Senate's recently passed ROAD to Housing Act. We commend the bipartisan leadership of this Committee, particularly Housing and Insurance Subcommittee Chairman Flood and Ranking Member Cleaver, in championing these solutions.”

Ms. Julie Smith, Chief Administrative Officer, Bozzuto, on behalf of the National Multifamily Housing Council (NMHC), the National Apartment Association (NAA), and the Real Estate Technology and Transformation Center said, “At a time when housing providers are facing increasing pressure to meet booming demand, an overly burdensome regulatory framework is forcing financers, developers, and operators to manage numerous compliance hurdles and rising costs. Housing affordability, driven by a lack of supply, is a top issue plaguing communities nationwide. The only way out of this supply shortage crisis is to build more housing—but the current political and regulatory environment makes it incredibly hard to do so. In order to build more housing, we need private capital to see multifamily housing as a good investment. The additional risks caused by a strict regulatory environment, coupled with high interest rates, make this increasingly difficult.”

Mr. Tobias Peter, Senior Fellow and Codirector, American Enterprise Institute Housing Center said, “The problem is fixable with the right policies, but we must focus on solutions that truly move the needle while avoiding costly unintended consequences. The answer is to build more homes on smaller lots. Because land is costly, smaller lots mean smaller, more attainable homes—reducing costs and increasing the supply of family-sized starter homes. Since 2000, the country has built about 12 million homes; had we built them on slightly smaller lots instead, we would have roughly 9 million more homes today, and those homes would be priced about 15-20 percent lower.”