Say, kids, here's an idea: get a job! (Bonus material: regulations are driving up the cost of new building 24%)

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Construction labor crunch drives up costs and deepens America’s housing affordability crisis

Every month, the construction industry is short around 350,000 workers. 

What's more, the National Association of Home Builders estimates the industry will need to hire nearly 723,000 workers per year just to keep pace with demand and close a nationwide housing gap of 1.5 million homes.

Home Builders Institute President and CEO Ed Brady told Fox News Digital the skilled labor shortage in the U.S. is "severe" and driven largely by "an aging workforce, fewer young entrants into the trades and decades of underinvestment in vocational training."

"This shortage adds nearly two extra months to building timelines, inflating costs and delaying delivery," Brady said.

A joint study by the Home Builders Institute and the University of Denver found that in 2024 alone, the labor shortfall resulted in 19,000 fewer homes built and an annual economic hit of $10.8 billion from higher carrying costs and lost production.

Joseph Kane, a fellow at Brookings Metro, said the shortage of skilled workers extends far beyond home building.

"Workforce development is not just a nice-to-do, but a must-do across the built environment. For housing, buildings, and other infrastructure systems (e.g. roads, water systems, etc.), it is crucial and mission-critical for employers to have a durable and dependable pipeline of talent," Kane said.

"Without this pipeline, employers are competing against each other for scarce talent, projects can run into delays, and additional uncertainties and costs may mount over time," added Kane, who studies the intersection between infrastructure and economic development.

All of which should, but probably won’t be of interest to young people considering going deeply into debt to obtain DEI college degrees: it’s a scam, kids, and don’t fall for it.

But it’s this part of the article that really caught my eye: regulations are responsible for 24% of the cost of new housing.

The revelation comes as the U.S. grapples with a slew of housing challenges that, brick by brick and regulation by regulation, have helped contribute to today’s crisis. 

Experts point to three major forces doing the most damage: restrictive zoning, land-use barriers and financial policies that have choked supply and pushed prices out of reach.

Jim Tobin, president and CEO of the National Association of Home Builders, said the cost of regulations alone plays a massive role in housing affordability.

"Regulatory burdens really do add up on the unaffordability index," Tobin told Fox News Digital. 

"We estimate that 24% of the cost of a single-family home is embedded in regulations at all three levels of local, state and federal government. That comes out to roughly $94,000 in regulatory costs."

I’ve read figures like that for years, but I asked Grok to check it out:

ANSWER:

Verification of the Quote.

The quote you mentioned is accurate and directly attributable to Jim Tobin, the president and CEO of the National Association of Home Builders (NAHB), the primary trade association for the U.S. home building industry (often referred to in shorthand as the "National Home Builders of America"). He made this statement in a November 2025 interview with Fox News Digital, amid discussions on housing affordability challenges.

  • Exact Wording: "We estimate that 24% of the cost of a single-family home is embedded in regulations at all three levels of local, state and federal government. That comes out to roughly $94,000 in regulatory costs."

  • Context: Tobin highlighted how these burdens exacerbate unaffordability, including delays and community-level restrictions on growth. The quote has been widely reported in outlets like Fox Business and economic analysis sites.

Accuracy Assessment.

The estimate is a reasonable approximation based on NAHB's most recent comprehensive data, though it's a slight rounding of their official figures and reflects national averages with some variability by region and home type. Here's a breakdown:1. Basis of the Estimate

  • NAHB derives this from their periodic "Cost of Doing Business" surveys, which poll thousands of builders on itemized expenses for a typical new single-family home built for sale.

  • The latest full regulatory breakdown is from their 2021 study (published in 2022), updated with inflation and cost trend adjustments in subsequent reports like the 2024 Cost of Constructing a Home survey.

  • Key components include:

    • Development phase (land acquisition to site preparation): Impact fees, permitting, environmental reviews, and infrastructure mandates (~$41,000–$50,000).

    • Construction phase: Building code compliance, inspections, energy efficiency standards, and architectural requirements (~$50,000–$55,000).

  • Total regulatory costs exclude core materials/labor but capture "embedded" add-ons from government rules at all levels.

2. The 24% Figure

  • In the 2021 study: Regulatory costs totaled $93,870, representing 23.8% of the average new single-family home price of $394,300.

  • NAHB has noted regulatory costs rose ~11% faster than general inflation from 2016–2021, and they've continued to track upward pressure in 2024–2025 reports (e.g., due to updated energy codes and labor shortages tied to compliance).

  • Tobin's "24%" is a minor rounding up, likely accounting for ~3–5% cost growth since 2021 (aligned with broader construction inflation). Recent NAHB analyses confirm regulations still hover around 22–25% nationally.

3. The $94,000 Figure

  • This directly matches the 2021 study's $93,870 total, rounded up slightly for simplicity.

  • Applied to current prices: The average new single-family home price in 2024 was ~$484,800 (per NAHB's November 2024 data), rising to ~$512,000 in 2025 (U.S. Census/Statista). At 24%, this equates to $116,000–$123,000 today—suggesting Tobin's figure uses a slightly dated or conservative base price (e.g., closer to $390,000–$400,000) to emphasize the embedded share rather than absolute dollars.

  • Regional variations: In high-regulation states like Washington or California, it can exceed 29% (~$200,000+ on a $690,000 median home), per state-specific NAHB adaptations.

4. Strengths and Limitations

  • Substantiated: NAHB's methodology is rigorous (e.g., surveying 4,000+ builders) and widely cited by policymakers, including in congressional hearings on housing supply. It's not an outlier—similar estimates from sources like the Urban Institute peg regulations at 20–30% of costs.

  • Potential Biases: As an industry group, NAHB advocates for deregulation, so figures may emphasize upper-bound impacts. Independent audits (e.g., by the HUD) align closely but sometimes attribute 5–10% less to "pure" regulations vs. market-driven fees.

  • Timeliness: The core data is from 2021, but 2024–2025 updates validate the trend without major revisions.

In summary, the quote is highly accurate as an NAHB-endorsed estimate—it's not exaggerated, but a snapshot of ongoing trends. If home prices continue climbing (as forecasted), the dollar impact will grow, underscoring Tobin's point on affordability. For the full 2021 study or 2024 cost breakdowns, check NAHB's site directly.

That’s for regulatory costs affecting housing; now multiply that across the entire economy, and it’s not difficult to see why the U.S. began losing steam when the regulation explosion began in 1970.