Homebuilders say materials, regulatory costs and lot development are driving up housing prices in Montgomery County

Ian Friend, president of the New River Valley Homebuilders Association, presented local housing data to the Montgomery County Board of Supervisors on March 9, 2026, saying higher materials prices, mortgage rates and regulatory costs are increasing the price of new homes and constraining housing supply.

"Cumulative inflation has been up to 27.5% overall since 2020," Friend said, noting that lumber, concrete, steel and drywall all contributed to substantial increases in builder costs. He told supervisors that the National Association of Home Builders attributes roughly $93,870 of the per‑home cost to regulatory requirements such as traffic and environmental studies, impact fees and land dedication.

Friend and colleague Steve Simonus presented local examples showing lot‑development and unit costs: a recent developed‑lot example showed roughly $180,000 per lot after grading and utilities; multifamily bed‑and‑unit costs varied widely based on density and complexity. Friend said lower‑density projects carry much higher per‑bed and per‑unit costs and urged more by‑right development options to allow simpler, denser construction.

On policy, Friend identified pending state bills as potential tools: HB1144 (reimburse or waive connection fees for first‑time buyers and affordable housing projects), HB1212 (small‑lot ordinance requirement for localities over 20,000), HB806 (EDA bond authority for residential projects) and HB196 (pilot infrastructure fund for sewer, water and roads to lower upfront lot costs). He said those bills were awaiting the governor’s signature at the time of his presentation. Locally, he recommended density bonuses for projects that reserve affordable units or provide public amenities, and clearer by‑right standards to reduce zoning delays.

Board members thanked the association for the data. The presentation framed a set of options the county could consider as it works with neighboring localities and state partners to increase housing supply and lower development costs.