Builders Applaud Repeal of Energy Mandates

Builders Applaud Repeal of Energy Mandates

Builder groups are praising the federal government’s decision to rescind proposed energy mandates that critics argued would have significantly increased the already high cost of developing single-family and multifamily housing.

Effective May 1, the Department of Housing and Urban Development and the Department of Agriculture withdrew planned energy-efficiency requirements for federally financed homes. The rules would have required compliance with standards set by the International Energy Conservation Code and the American Society of Heating, Refrigerating and Air-Conditioning Engineers.

The National Association of Home Builders estimated the proposed mandates could have added between $9,600 and $21,400 to the cost of a new home, depending on regional climate conditions. In a statement, NAHB Chairman Bill Owens said the repeal “will make it easier for builders to increase housing supply at more attainable price points for American buyers.”

The policy shift comes amid ongoing affordability pressures in the housing market. Mortgage rates and energy costs have been rising, while developers continue to face elevated prices for construction materials. According to Freddie Mac, the average rate for a 30-year fixed mortgage was 6.3% for the week ending April 30, up from 6.23% the previous week, but still below the 6.76% average recorded a year earlier.