The National Association of Home Builders ( NAHB ) told Congress February 19 that federal permitting inefficiencies delay housing projects , raise construction costs and exacerbate the nation ’ s housing affordability crisis .

Testifying before the Senate Environment and Public Works Committee , NAHB Chairman Carl Harris , a custom home builder from Wichita , Kan ., told lawmakers that “ most land developers have been forced to step away from particular parcels of land due to the uncertainty of being able to obtain the necessary permits .”

On this issue , Harris noted that the Clean Water Act ( CWA ) stands out among the regulated community because it is unclear which parts of the land parcel may be considered “ waters of the United States ” ( WOTUS ) and therefore require a federal wetland permit .

“ Obtaining a CWA Section 404 permit takes upwards of one year , and completing an Endangered Species Act ( ESA ) consultation when required can take several more ,” said Harris . “ When considering these implications , it ’ s clear why we need to make the unwieldy permitting process more straightforward for home builders .”

According to a 2021 NAHB study , regulatory costs at the federal , state and local levels account for 24 % of the final price of a new single-family home built for sale . Achieving predictability and certainty in the federal permitting process will help reduce the overall

cost of construction , which will help increase the nation ’ s housing supply .

With the EPA and Army Corps of Engineers blatantly overstepping their federal authority regarding jurisdictional waters of the U . S ., NAHB is urging Congress to consider the following improvements :

If the agencies continue to refuse to provide regulatory definitions for “ relatively permanent ” water flow or what constitutes a “ continuous surface connection ,” Congress must step in and define these terms . Or conversely , lawmakers should identify features that cannot by statute be considered WOTUS .

Congress must ensure the agencies prioritize responding to requested jurisdictional determinations and processing CWA Section 404 permits in a timely manner .

Regulatory changes to the definition of WOTUS should not invalidate prior approved jurisdictional determinations . Like the CWA , the ESA ’ s Section7 consultation process requires builders to first consult with the U . S . Fish and Wildlife Service or the National Oceanographic and Atmospheric Administration before they can start construction if their project may impact endangered species . This process usually results in permitting delays , project reconfiguration , and possibly the loss of buildable lots .

Regulatory changes that

establish clear timeframes for the agencies to complete the Section 7 consultation process , as well as expanded use of programmatic Section 7 consultations , would help ensure ESA consultations are completed in a timely manner and eliminate some of the uncertainties and permitting delays that have plagued the Section 7 consultation process since its inception .

“ Enacting common sense regulatory reforms that will make compliance more efficient and less onerous will help home builders to better safeguard the environment and expand the availability of attainable , affordable housing for all Americans ,” said Harris .

25 % Tariffs on Steel and Aluminum Will Drive Up Housing Prices

In a move widely expected to raise residential construction costs , the White House has announced that 25 % tariffs on all imported steel and aluminum products will take effect in March .

“ Through an executive order on his first day in office , President Trump made it a top priority to reduce housing costs and increase housing supply to ease the nation ’ s housing affordability crisis ,” said NAHB Chairman Carl Harris . “ The administration ’ s move to impose 25 % tariffs on all steel and aluminum products imports into the U . S . runs totally counter to this goal by raising home building costs , deterring new development and frustrating efforts to rebuild in the wake of natural disasters .

Ultimately , consumers will pay for these tariffs in the form of higher home prices .”

After the president signed two executive orders to impose the tariffs , the White House issued a fact sheet stating it is acting to “ protect America ’ s critical steel and aluminum industries , which have been harmed by unfair trade practices and global excess capacity .”

The new tariffs on steel and aluminum products are projected to raise the cost of imported steel and aluminum products by several billion dollars , adding layered costs that could substantially impact builders ’ ability to deliver new single-family and multifamily projects .

This action on tariffs comes just one week after President Trump announced a one-month pause on other tariffs for Canadian and Mexican goods .

NAHB continues to urge the administration to carefully consider the potential effects of placing additional tariffs on building materials , which could price even more families out of the American dream of homeownership .

“ We will continue to work with the administration to remove regulatory and other barriers that raise housing costs and hinder the production of new homes and apartments ,” said Harris .