Supreme Court Ruling Reaffirms Power of Federal Regulators

Codes and Standards
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Workforce Development | Student Chapters

Mar 30, 2026

NAHB Student Chapter at Alabama A&M University Off to Fast Start

AAMU made its debut at the IBS Student Competition in Orlando. The chapter’s quick formation, ties to its local HBA and strong student leadership skills tell an inspiring tale of what NAHB members can do to support the future of the residential construction industry.

Economics

Mar 30, 2026

Micro Markets Lone Bright Spot for Single-Family Home Building in Fourth Quarter

In a sign of ongoing affordability challenges and a tepid housing market, single-family construction fell across all geographic regions in the second half of 2025, with the exception of low-density, low-populated micro counties. Conversely, multifamily construction posted gains across all geographic regions. These are the major findings of the latest NAHB Home Building Geography Index (HGBI) for the final two quarters of 2025 released today.

View all

Latest Economic News

Economics

Mar 30, 2026

NAHB HBGI: Micro Markets Lone Bright Spot for Single-Family Building in Fourth Quarter

Single-family construction declined further in the fourth quarter in all but sparsely populated micro counties, according to the NAHB Home Building Geography Index (HBGI).

Economics

Mar 26, 2026

State/Local Property Tax Revenue Rises Past $210 Billion in the Fourth Quarter

Property tax revenue collected by state and local governments rose for the ninth consecutive quarter according to the Census Bureau’s quarterly summary of state and local tax revenue.

Economics

Mar 25, 2026

Age of Housing Stock by State

According to the latest data from the 2024 American Community Survey (ACS), the median age of owner-occupied homes has reached 42 years old. The age of the housing stock is an important remodeling market indicator.