On May 20, HUD released a report pursuant to Executive Order 14394, “Removing Regulatory Barriers to Affordable Home Construction,” recommending that state and local governments adopt regulatory changes aimed at lowering housing costs and reducing obstacles to residential construction.

The report organizes recommendations into three categories: (i) reducing home construction costs, including capping permitting fees, eliminating impact fees unless directly quantifiable and proximate to a specific development, eliminating or sunsetting green-energy building requirements, and opening construction to manufactured and modular methods; (ii) unlocking land for new housing supply, including expediting disposal of publicly owned land for housing development, removing urban growth boundaries and growth moratoria, and allowing by-right development for single-family homes; and (iii) accelerating construction timelines, including establishing permit review “fast lanes,” imposing cumulative building timelines of fewer than 60 days for right-to-build approvals and fewer than 30 days for construction permitting and inspections, leveraging AI for expedited permit approvals, and adopting building contractor license reciprocity between and within states.

HUD asserted that regulatory costs account for more than $100,000 of the final price of a new single-family home, that green-energy mandates in some jurisdictions’ building codes can add up to $30,000 to construction costs, and that deregulation efforts in 2025 are projected to save Americans $212 billion.