Supreme Court Ruling Reaffirms Power of Federal Regulators
The Supreme Court today narrowly decided to uphold, with significant limits, a doctrine that has plagued the regulated community for years. The case, Kisor v. Wilkie, addressed the issue of whether courts should defer to an agency’s interpretation of its own regulations, known also as Auer deference.
NAHB supported the petitioner with amicus briefs on behalf of an industry coalition organized by the association. NAHB has long been concerned with this type of judicial deference because it can create incentives for agencies to avoid formal rulemaking processes, or create vague regulations that they can interpret and re-interpret at a later date. Either tactic prevents the regulated community from participating in the development of the rules that govern their activities.
Auer deference has harmed NAHB’s interest in a number of cases, including a Clean Water Act case where the court relied on Auer to affirm the finding of a violation against property owners who had constructed a ditch to build a residential subdivision.
In a fractured opinion written by Justice Elena Kagan, the Supreme Court declined to overrule its precedent establishing this deference doctrine, and instead identified a series of factors that courts should use when determining whether Auer deference is appropriate. The court stressed that, under this new formulation, the situations where Auer will be applied will be far fewer than is currently the case.
It remains to be seen whether the limitations recommended by the court will address the many problems that NAHB and others in the regulated community have raised.NAHB will vigilantly monitor the application of this re-imagined Auer deference in the lower courts, and engage in opportunities to ensure that the newly-outlined limitations are broadly applied.
Latest from NAHBNow
Jul 28, 2026
High-Density Building Completions Hold Highest Multifamily Market Share in 2025For the ninth consecutive year, most new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.
Jul 27, 2026
Building A Resilient Home from the Ground Up With Climate Responsive DesignAs climate pressures intensify, builders are being asked to deliver homes that perform under more challenging conditions. The most effective place to start is at the site and planning level, where architects, engineers and builders work together.
Latest Economic News
Jul 28, 2026
How a Home Purchase Boosts Consumer SpendingThe housing market has changed greatly since the COVID-19 pandemic, along with consumer spending behaviors. During this period, housing demand surged, home prices appreciated rapidly, inflation increased, supply-chain disruptions happened, and mortgage rates moved from historic lows to elevated levels.
Jul 28, 2026
Median Lot Value Stabilizes as Regional Trends DivergeFollowing a multi-year run of record highs, the national median lot value for single-family detached spec homes largely stabilized in 2025. According to NAHB’s analysis of the Census Bureau’s Survey of Construction (SOC), the U.S. median lot value for homes started in 2025 was $59,000, compared with $60,000 a year earlier.
Jul 27, 2026
Share of Apartments Built in Buildings with 50+ Units Moves Higher in 2025Following the highest number of multifamily completions in nearly 40 years in 2024, completions declined in 2025 to 484,000, according to NAHB analysis of the Census Bureau’s Survey of Construction. For the ninth consecutive year, a majority of new multifamily units were in buildings with 50 or more units (labeled as high-density buildings) at 57%, the highest share since 2021.