Chairman of the National Association of Home Builders (NAHB), Carl Harris, criticized the recent announcement by the Biden administration regarding new regulations impacting housing affordability. The U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) will now only insure mortgages for new homes if they adhere to the 2021 International Energy Conservation Code (IECC).
Harris expressed his concerns stating, "Without adequate review and consideration of how it will affect home buyers or renters, HUD and USDA have rammed through a rule that will do little to curb overall energy use in the U.S. but will exacerbate the housing affordability crisis." He further highlighted the financial burden this regulation could impose, noting that "building to the 2021 IECC can add up to $31,000 to the price of a new home and take up to 90 years for a home buyer to realize a payback on the added cost of the home."
The NAHB Chairman emphasized that the rule would not provide significant energy savings for residential properties and criticized its impact on housing affordability, particularly for entry-level homes and affordable rental properties. Harris pointed out that the new mandate contradicts the Biden administration's goal of constructing 2 million new homes, stating, "This new rule runs completely counter to that objective."
Highlighting the role of HUD and USDA in supporting vulnerable home buyers and renters, Harris condemned the regulation for potentially pricing them out of the housing market. He concluded by labeling the nationwide codes mandate as "senseless" and warned that it would "significantly raise housing costs" while offering little benefit to new home buyers and renters.
