WASHINGTON, D.C. — The U.S. Department of Energy said nationwide adoption of the 2024 International Energy Conservation Code could add billions of dollars to residential construction costs and increase the price of a typical new single-family home by as much as $14,000, escalating the administration’s push against energy-efficiency mandates it says are worsening the housing affordability crisis.
The department released an analysis concluding that the 2024 code would increase residential construction costs by more than $9.2 billion annually compared with 2006 code standards, resulting in more than $127 billion in cumulative costs nationwide.
According to the analysis, projected energy savings from the updated code would take more than a decade to offset the higher construction costs in most states, with some payback periods extending beyond 20 years.
“American families should not be forced to pay more for a home because of nonsensical energy-related mandates,” Energy Secretary Chris Wright said in a statement. He argued that increasingly stringent building requirements have made homeownership more expensive while limiting consumer choice.
The department also sent a letter to the International Code Council, which develops model building codes used by states and local governments, urging the organization to place greater emphasis on affordability, transparency and fuel-neutral energy efficiency.
DOE specifically called on the ICC to remove provisions related to onsite energy generation, electric vehicle infrastructure and greenhouse gas reduction measures that the agency said add costs and extend payback periods for homeowners.
Assistant Secretary for Energy Efficiency and Renewable Energy Audrey Robertson said the analysis demonstrates how building code requirements can increase housing costs while delivering limited financial benefits to consumers.
The release comes as the Trump administration seeks to reduce federal regulations affecting home construction and energy use. The department said the effort aligns with President Donald Trump’s executive order on removing regulatory barriers to affordable home construction.
The Energy Department has also issued a Request for Information seeking public input on its methodology for evaluating the consumer impacts of building energy codes.
The 2024 International Energy Conservation Code is a model code that states may adopt or modify when updating their residential and commercial building standards. Adoption of the code varies widely across the country, with states retaining authority over whether and how to implement the standards.
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