On March 13, President Donald Trump issued two executive orders, entitled “Removing Regulatory Barriers to Affordable Home Construction” and “Promoting Access to Mortgage Credit,” which aim to streamline federal permitting requirements for residential developments and to reform origination of qualified mortgages, respectively. The Department of Housing and Urban Development (HUD) and the National Association of Realtors (NAR) released statements following the orders.

 “President Trump’s executive orders will help HUD deliver on his promise to provide economic relief to American families and make homeownership affordable again,” HUD Secretary Scott Turner said in a release. “Ending burdensome regulations and improving mortgage affordability supports increased housing supply and pushes affordable homeownership back within reach for American families.”

According to the release, regulatory costs account for almost $94,000 of the final price of a new single-family home, and green energy mandates in building codes can add over $30,000 to the cost of construction.

In accordance with the orders, HUD will “terminate regulatory barriers, reform programs and incentivize states and localities to change burdensome rules that hinder residential development, housing affordability and availability of home loans,” the release stated.

NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn released a statement of support for the order facilitating home construction.

“America’s housing affordability crisis is fundamentally a supply problem, and solving it requires removing the barriers that make it harder and more expensive to build homes. Realtors strongly support efforts to streamline regulations, modernize permitting processes and reduce unnecessary mandates that slow construction and drive up costs for homebuyers,” McGahn said.

“Today’s executive action by President Trump to remove regulatory barriers to affordable home construction is an important step toward making it easier for communities to build the homes Americans need,” McGahn continued. “By directing federal agencies to review and reform rules that delay development — from environmental permitting to housing finance and energy standards — the administration is helping address the regulatory bottlenecks that have contributed to the nation’s housing shortage.”