I represented South Dakota at the National Association of Home Builders (NAHB) Spring Leadership
Meetings in Washington, D.C., June 9–13, 2026. The week combined committee work, an economic
and codes briefing, direct engagement with four members of the President’s cabinet, and a
legislative day on Capitol Hill. What follows is a summary of the developments most relevant to our
industry and to how we build in South Dakota.

Capitol Hill — South Dakota Delegation
On Wednesday, June 10, we met directly with Senator John Thune and Representative Dusty
Johnson. Our delegation also met with Senator Mike Rounds the prior evening. Conversations
centered on NAHB’s core advocacy priorities: the housing legislative package, regulatory reform,
and workforce. Across the broader federation, more than 300 congressional meetings were held
during the week, with reception described as constructive on both sides of the aisle.

The headline legislative item is the 21st Century ROAD to Housing Act, a broad bipartisan package.

A central point of contention has been a provision (Section 901 of the Senate version) that would
have required institutional investors to sell purpose-built single-family rental homes within seven
years — a forced-sale mandate NAHB warned could cut housing production by 40,000 to 72,000
units annually. The House passed an amended version in May that strips that seven-year selloff rule,
and the bill has returned to the Senate for reconciliation. NAHB advocacy was central to removing
the provision in the House text, and the signals during our meetings were that it is unlikely to survive
conference — though final passage remained unsettled, with movement targeted before the late
summer recess.

Federal Regulatory Reform — Cabinet Engagement
Four cabinet-level officials addressed the meeting. The consistent message was deregulation paired
with faster permitting.

HUD — Secretary Scott Turner
HUD, jointly with USDA, rescinded the 2024 rule that tied FHA- and USDA-backed mortgage
eligibility for new construction to compliance with the 2021 IECC energy code. HUD estimated

the mandate would have added roughly $20,000–$31,000 to the cost of a new home; NAHB’s
own estimate was lower, in the range of $9,600–$21,400 depending on climate zone. New
homes financed through those programs must still meet energy-efficiency standards, but no
longer the stricter 2021 IECC.
• HUD released a non-mandatory “best practices” report for state and local governments aimed
at reducing construction costs, expanding available land, and shortening build timelines — a
playbook of recommendations rather than mandates.

SBA — Administrator Kelly Loeffler
• The SBA Working Capital Pilot Program offers project-based lending to builders through a
broad network of participating banks, backed by a federal guarantee that lowers lender risk.
Most homebuilders qualify as small businesses.
• Builders encountering federal regulatory obstacles were directed to the SBA Office of Advocacy
at redtape@sba.gov. An executive order now permits permit self-certification where local

processing exceeds 60 days, intended to accelerate disaster rebuilding.

FHFA — Director Bill Pulte
• FHFA and HUD are coordinating to modernize the appraisal and closing process using
technology, with the stated goal of reducing closing costs and friction for new construction.
• Director Pulte encouraged small and mid-sized builders to consider forming their own title and
mortgage operations to compete with the largest builders on liquidity and rates.

EPA — Administrator Lee Zeldin
• EPA is finalizing a narrower, simpler definition of “Waters of the U.S.” (WOTUS) following the
Sackett decision, intended to let property owners determine federal jurisdiction without costly
consultants.
• EPA proposed eliminating diesel exhaust fluid (DEF) requirements and is reconsidering the
HFC technology-transition rule. The Administrator invited NAHB to submit a comprehensive list
of every permitting and regulatory obstacle, pledging to work through it.

Economic & Market Outlook
NAHB’s chief economist, Rob Dietz framed the near term as slow growth with elevated risk rather
than assured downturn, and the outlook for our segment as comparatively favorable.
• Interest rates: a new-mortgage “normal” near 6.5%, with the 10-year Treasury around 4.5%.
Forecasts include possible rate cuts in late 2026 and 2027, though the path depends heavily on
inflation and geopolitical developments.
• Input costs: construction materials up roughly 6–7% year-over-year and potentially higher if
tariff and energy pressures persist. Copper is up sharply (roughly +35–40%) and aluminum
higher still, driven in part by data-center demand. Section 232 metal tariffs, a 10% lumber tariff,
and a 25% foreign-cabinet tariff remain in effect.
• Labor: residential construction lost workforce over the past year even as nonresidential added
jobs, with data centers and infrastructure competing for the same trades.
• Our segment: single-family is forecast down about 3% nationally for 2026, concentrated in
spec and large-builder production — but custom homes grew roughly 3% in 2025, are

expected to grow again in 2026, and are gaining share toward about 20% of single-family
starts. Midwest new-home sales were up about 6% year-to-date against a national decline.
This is a meaningful tailwind for a custom builder in our market.

Workforce — The Constraint Behind the Numbers
Labor was the through-line across nearly every session. The residential trades lost workforce over
the past year while data centers, infrastructure, and commercial work competed for the same skilled
labor — a squeeze we feel directly in our market. Members repeatedly tied production capacity to
crews, not demand; one example cited the need for several skilled-trade visas just to build a few
dozen homes. On the policy side, NAHB is backing workforce provisions tied to the Dignity Act,
though the immigration and workforce measures face the steepest bipartisan resistance of anything
in the legislative package.
On the pipeline side, the Home Builders Institute (HBI) is recruiting local “workforce champions” to
get its skilled-trades curriculum adopted in more schools, with the limiting factor being faculty and
classroom space rather than funding. This is an area where local engagement — connecting our
trades to schools and training programs — has a direct line to the labor we will need on future
jobsites.

Building Codes — 2027 ICC Cycle
The 2027 International Code Council cycle advanced with a high overall approval rate, and several
outcomes favored residential builders, including recognition of standards for modular construction
and an expanded single-exit allowance supporting missing-middle housing.
500-year floodplain requirement: the most consequential change for custom builders. The 2027

code cycle advances a requirement that occupied portions of structures be elevated at or above the
500-year flood elevation, up from the long-standing 100-year standard. Many jurisdictions do not yet
have 500-year flood mapping, which will create uncertainty as the code is adopted (anticipated
beginning 2028). Builders should begin weighing lot-elevation strategies against structure-elevation
strategies now. NAHB plans a dedicated toolkit, including cost-impact and state-level analysis, to
support local amendments.

Field Alert — Type 1L Cement
This item is directly actionable for our members. Type 1L (Portland-limestone) cement now makes
up roughly 60% of the U.S. market and is rising fast — and it is not a one-for-one replacement for
traditional Type I/II. Its limestone content changes water behavior during curing and finishing, and
the industry has seen a notable rise in failed flatwork since its introduction.
• A South Dakota survey found some suppliers label 1L simply as “Type I” on batch
tickets. Crews should assume every batch is 1L unless confirmed otherwise, and should
require the cement type to be listed on the ticket.
• Adding water on-site is not the fix — it commonly causes failure. Finishing requires chemical
aids and close attention to surface moisture. Consider specifying higher compressive strengths
(per ACI 318/332 guidance) than the typical 3,000 psi for durability, and advise homeowners
against applying salt to new driveways through the first winter.

Other Items of Note
• Construction liability: the FinCEN residential real-estate reporting rule (non-financed transfers)
has been vacated nationwide and is under appeal — currently paused but worth monitoring, as
builders who prepare their own deeds could face exposure if reinstated. The Biden-era overtime

threshold was repealed, returning the salary threshold to the prior 2019 level.
• Strategic direction: NAHB is mid-stream on “Blueprint to 100,” a comprehensive review of its
membership model, dues structure, and bylaws, informed by an industry-wide pulse survey. A
first dues increase since 2013, tied to CPI, is planned for January 2028. The next three-year
strategic plan is being drafted for adoption this fall in Detroit.
• Codes adoption support: NAHB is building education resources to help state and local HBAs
respond to the 2027 code provisions at the local level.

Facility Tour — Home Innovation Research Labs
On Tuesday, June 9, I coordinated a small group of builders from across the country on a visit to the
Home Innovation Research Labs (HIRL). We met with the HIRL leadership team for an overview of
the organization’s history, structure, and research processes, followed by a walking tour of both
buildings at the facility.

HIRL is the independent research subsidiary of NAHB, founded in 1964 and based on a research
campus in Upper Marlboro, Maryland. It is the accredited certifying agency behind the National
Green Building Standard (NGBS) — the only residential green building rating system approved by
ANSI as an American National Standard. Its work spans product testing, market research,
consulting, and third-party certification, and the testing and laboratory spaces we toured are where
product and assembly evaluation is conducted — the research that underpins code development
and gives builders third-party validation for performance and quality. The NGBS pathway is also
worth noting as an alternative energy-code compliance and market-differentiation option for builders.

South Dakota Home Builders Association

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