The report by the National Association of Home Builders (NAHB) and the National Multifamily Housing Council (NMHC) reveals that regulations account for an average of 40.6% of multifamily development costs. These regulations include fees, standards, and requirements imposed at various stages of development and construction. The report highlights that such regulatory costs can significantly increase rents and discourage developers from building in areas with high regulatory burdens, such as those with inclusionary zoning or rent control policies. Additionally, neighborhood opposition, often referred to as “NIMBYism,” adds to development costs and delays. The report calls for a thorough evaluation of these regulations to balance their benefits with the financial impact on housing affordability.

https://www.nmhc.org/research-insight/research-report/nmhc-nahb-cost-of-regulations-report