Regulations costly

About 20 percent of the cost of a new house goes for regulations. Michael Sumichrast, chief economist at the National Association of Home Builders, reports:

''I built a swimming pool - nothing special - in Montgomery County, Md., three years ago and had 17 inspections - the electrical inspector came twice. I also had to post a $2,000 bond for the work and the county kept the money for four months.''

''It's the inconvenience!'' Mr. Sumi-chrast asserts.

In New England, he continues, it's zoning. ''You mess up the whole national data when you look at Massachusetts, where the average lot size is about 40,000 square feet. Thus, it is extremely expensive.''