> The material costs are high too because of regulations that require specific lumber for framing etc.
Having done some extensive remodeling and building work in recent years and going to great lengths to follow building codes, this just isn't it. The type of lumber you can use for most framing jobs isn't that special. Having walked through a number of new construction properties and seeing what passes code, I don't think relaxing lumber standards would be a good idea, nor buy us anything.
When lumber, cabinetry, and other building products have tariffs in the range of 10-50%, you can't tell me that tariffs are not the primary problem driving costs up right now. There just isn't a secret stash of lesser grade lumber lying around that would also be perfectly good for building homes.