(There is an article here on hackers news not too long ago that said that while most industries had had huge productivity gains in the last 30 years, construction had been flat or decreasing - mostly because of increased regulation)
Permits for everything (some permits are good, some are SO bad), mandates for things that increase cost for marginal/no gains in the finished product, and a ton of red tape/money going to people not involved in the actual work or the quality of the end product. If I, as a builder, have to go through all that bullshit for each house I build, the sane response is that I'm only building expensive houses that take more time but end up being similar $/hr for me, because I end up saving money and time dealing with the regulators.