Government-imposed regulations account for more than 40% of all multifamily development costs, according to new research by the National Association of Home Builders and the National Multifamily Housing Council.

And "some of these regulatory mandates can discourage developers from building in the very marketplaces that have the greatest need for more housing," the entities write in a new report breaking down the data. "This can prove to be particularly burdensome in a world of rising costs."

Nearly 48% of multifamily developers said they avoid building in jurisdictions with policies like inclusionary zoning, and a whopping 87.5% will avoid building in a jurisdiction with rent control in place. Typically, when inclusionary zoning is at play, a density bonus is provided to developers to allow them to include more units than would normally be permitted by zoning. But according to NAHB/NMHC, "these incentives are often inadequate and do not fully cover the lost rental revenue."