When people talk about why housing has become more expensive, the conversation usually centers around interest rates, material costs, labor shortages, or a lack of inventory.

A recent study highlighted another factor that receives far less attention: regulation.

According to the National Association of Home Builders, government regulations account for an estimated 26.4% of the price of a new single-family home. On an average new home, that amounts to roughly $131,700. What's even more surprising is that the estimate has increased by about 40% since the organization's 2021 study.

These costs come from a variety of sources, including permit fees, required studies, development standards, building code changes, inspections, and other regulatory requirements that occur throughout the development and construction process.

To be clear, not every regulation is unnecessary. Many exist for good reasons, including safety, environmental protection, and ensuring consistent construction standards. In fact, the study itself does not argue that regulations should be eliminated. Instead, it attempts to measure their overall impact on housing costs.

What I find interesting is how rarely these costs are discussed. Each individual requirement may seem reasonable on its own, but every new fee, standard, or requirement adds cost somewhere along the way.

One reason Tennessee continues to attract new residents is that many of our communities remain relatively affordable compared to other parts of the country. While we are certainly affected by national regulations and building standards, many areas of Middle Tennessee have avoided some of the local burdens that have driven housing costs much higher elsewhere.

Whether you're buying, selling, or simply following the market, it's an interesting reminder that housing affordability is influenced by far more than just the price of lumber or the latest mortgage rate.