Government regulations are adding nearly $132,000 to the cost of newly built houses, according to a new report released as Americans struggle to become homeowners.

The findings show that more than one-quarter of the final prices of newly constructed homes come as housing affordability remains a top concern nationwide, with elevated mortgage rates and limited inventory putting homeownership out of reach for many families.

The issue is also expected to be a key focus heading into the 2026 midterm elections, as lawmakers face growing pressure to address high housing costs and the affordability crisis overall.

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The National Association of Home Builders (NAHB), which commissioned the report, argues that regulations imposed by federal, state and local governments have become a major driver of the nation’s housing shortage and affordability challenges.

The study found regulations add an average of $131,734 to the cost of a newly built home, representing 26.4% of the final sale price. The estimate, based on the average new-home price of $499,500, marks the largest increase between consecutive NAHB surveys since the organization began tracking the data in 2011.

Regulatory costs have climbed a whopping 40% since 2021.

«We update our study every five years and this reinforces what we have been saying all along — that the cost to build a single-family home in this country continues to escalate and exacerbate the housing affordability crisis,» NAHB President and CEO Jim Tobin told Fox News Digital. «We’re up 40% over the last five years, and now regulatory burdens at every level of government are totaling more than $130,000 for the cost of a new home.»

NAHB estimates the U.S. faces a structural housing shortage of 1.2 million homes, arguing rising regulatory costs make it more difficult to increase supply.

Tobin said regulatory costs vary across the country, with states in the Southeast, including Texas, Florida and the Carolinas, generally maintaining a lower-cost regulatory environment than states such as California, New York, New Jersey and Illinois.

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The NAHB report comes as housing affordability remains a top concern nationwide, with elevated mortgage rates and limited inventory putting homeownership out of reach for many families. (Angus Mordant/Bloomberg/Getty Images)

He also said he expects regulatory costs to continue rising, but believes policymakers can help slow the pace through reforms.

«Anything we can do to lower that cost, I think would be really important,» Tobin said.

He pointed to the bipartisan 21st Century ROAD to Housing Act, which would streamline permitting, reduce barriers to new construction and expand financing tools intended to increase the nation’s housing supply.

The White House and the Department of Housing and Urban Development did not immediately respond to Fox News Digital’s request for comment on the report’s findings.

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NAHB said the study is not intended to argue that all regulations should be eliminated but to quantify their cumulative effect on housing affordability.

«While regulations are important, they can go too far,» Tobin told Fox News Digital. «We need to make sure health and safety are protected while getting rid of the more onerous and costly regulations that do nothing more than drive up costs and keep Americans out of homeownership.»

The analysis is based on surveys of 54 land developers and 337 single-family builders conducted in March 2026.

An Iranian official warned that the Islamic Republic will deliver a «hard slap» while another blatantly threatened the U.S. that «if you strike, you’ll get hit,» according to automatic translations from the two men’s Persian-language posts on X.

Ebrahim Rezaei, whose profile on the social media platform indicates that he is a representative in Iran’s Parliament and the spokesperson for the National Security and Foreign Policy Commission, wrote in a post on X, «The martyred Khamenei taught us not to fear America and showed that ‘falsehood will perish.’ Await the hard slap from the Iranians.»

The speaker of Iran’s Parliament, Mohammad Bagher Ghalibaf, warned, «America still hasn’t learned that bullying and breaking promises are no longer cost-free. Let me put it plainly: if you strike, you’ll get hit. Don’t flail around pointlessly, or you’ll sink even deeper: the Strait of Hormuz will only open with ‘Iranian arrangements,’ not American threats.»

Both of the men issued their posts on Wednesday after U.S. Central Command (CENTCOM) announced more strikes against Iran.

«At the direction of the Commander in Chief, U.S. Central Command forces have started conducting additional strikes against Iran to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz. The United States is holding Iran accountable for recent unjustified aggression against commercial shipping and civilian crews freely navigating a vital international waterway,» CENTCOM had noted in a post on X.

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The U.S. military later provided more information about the attacks.

«U.S. Central Command (CENTCOM) forces completed an additional round of strikes against Iran, July 8, to further degrade Iran’s ability to attack commercial shipping and innocent civilian mariners in the Strait of Hormuz,» CENTCOM noted on Wednesday night.

«U.S. forces struck approximately 90 Iranian military targets including air defense systems, coastal surveillance assets, missile and drone storage sites, naval capabilities, and military logistics infrastructure along Iran’s coastline. The latest strikes follow successful execution of offensive strikes in Iran the night before,» the announcement noted. «CENTCOM forces hit approximately 80 Iranian military targets July 7, including more than 60 Islamic Revolutionary Guard Corps small boats, to impose heavy costs for Iran violating the ceasefire by attacking three commercial vessels navigating the Strait of Hormuz.»

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President Donald Trump indicated on Wednesday that, as far as he was concerned, the U.S.-Iran Memorandum of Understanding ceasefire was «over.»

Kuwait and Bahrain have both reported coming under attack.

The Kuwait Army noted in a Thursday post on X, which was written in Arabic, «The Official Spokesman for the Ministry of Defense, Major General Saud Abdulaziz Al-Otaibi, stated that the armed forces detected, at dawn today, (3) ballistic missiles, (1) cruise missile, and (10) hostile drones within Kuwaiti airspace, which were successfully intercepted and dealt with.»

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President Donald Trump speaks as he meets with NATO Secretary General Mark Rutte on the sidelines of the NATO summit in Ankara, on July 8, 2026. (SAUL LOEB / AFP via Getty Images)

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The Bahrain Defense Force noted in a post that was in Arabic, «The General Command clarifies that, with firm resolve and high combat readiness, the Bahrain Defense Force’s air defense systems confronted, intercepted, and destroyed several treacherous Iranian aerial attacks this morning, Thursday, July 9, 2026 CE.»

An unlikely reason has chipped away, for now, at Senate Republican resistance against President Donald Trump’s flagship election priority.

The Safeguarding American Voter Eligibility (SAVE) America Act has hit brick wall after brick wall in the Senate, and has only twice mustered 50 votes. Still, Trump wants Republicans to pass it by any means necessary.

Republicans, however, aren’t unified behind it. One lawmaker, Sen. Mitch McConnell, R-Ky., has routinely voted against the bill in its variety of iterations, earning the personal ire of Trump.

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«Mitch McConnell,» Trump told reporters last month. «He’s very disloyal to John Thune. You know, John Thune was a very good person for him. I mean, he’s a very loyal person, and Mitch McConnell’s against him almost all the time because he’s angry, I guess. Probably at me.»

McConnell has been absent from the Senate, which is currently in recess, for almost three weeks due to health issues. When he will return still remains unclear.

But without his resistance, that’s one less «no» vote that Republicans have to contend with.

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Still, it doesn’t address the broader math problem in the Senate weighing down the chances of the SAVE America Act passing.

Senate Democrats are unified against it, meaning Trump and the SAVE America Act’s biggest proponents can’t break through the 60-vote filibuster, which has, in part, fueled the president’s demands to nuke the filibuster.

Senate Republicans don’t have the votes to do that, either.

«The only way you could get there is to undo or get rid of the legislative filibuster, and there aren’t even close to the votes here in the United States Senate in order to achieve that,» Senate Majority Leader John Thune, R-S.D., said last month.

There is the talking filibuster, which Sen. Mike Lee, R-Utah, has pushed for months, which Republicans have yet to turn to, largely over concerns of floor time being eaten away and fractured unity leading to Democratic wins.

Then there is the budget reconciliation route, which Trump has pushed Congress to consider. While Senate Republicans aren’t leaping at the prospect, the House is moving full steam ahead.

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Senate Majority Leader John Thune, R-S.D., speaks at a press conference with other members of Senate Republican leadership after a policy luncheon in Washington, D.C., on Oct. 28, 2025. (Nathan Posner/Anadolu via Getty Images)

House Speaker Mike Johnson, R-La., told Fox News’ Shannon Bream that he would move ahead with the reconciliation plan.

«We passed it three times in the House. We’re going to try one more time on a budget reconciliation bill, and I think that will be the way to get it through the Senate, and finally, to the president’s desk.»

Notably, though, House Republicans have not passed the version of the SAVE America Act that Trump desires, which would include a strict crackdown on mail-in balloting, a ban on transgender athletes in women’s sports and a ban on transgender surgical procedures for minors.

But even the bill’s biggest backers see reconciliation as a far-fetched option.

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Lee last month told Fox News Digital that the SAVE America Act was «policy, it’s non-budgetary. Therefore, SAVE America itself is not eligible for consideration in a third reconciliation.»

There could be alterations, like giving states federal funding to start doling out enhanced REAL IDs with citizenship verification in a reconciliation package, while separately passing a voter ID bill.

However, Lee believed that there was «no evidence that there is a viable path to a third reconciliation bill.»

«I hope there is. I would love to be wrong on that. I want us to do that. I think we should do that. But the schedule that we’ve got, to my great disappointment, is not — it doesn’t accommodate any of it.»