In a market already short more than 1.5 million housing units, Hughes said those extra expenses are keeping homes out of reach for many Americans, and stalling progress in fixing the country’s housing crisis.
One of NAHB’s biggest concerns is a federal mandate that ties mortgage insurance to strict new building codes.
New requirements from the Department of Housing and Urban Development (HUD) and the US Department of Agriculture (USDA) mandate that federally insured mortgages can only be used for new single-family homes built to the 2021 International Energy Conservation Code (IECC). For HUD-financed multifamily buildings, the minimum standard is either the 2021 IECC or ASHRAE 90.1-2019.
According to Home Innovation Research Labs, following the 2021 IECC adds more than $22,000 to the price of a new home. Some builders have pegged the real-world cost closer to $31,000.
NAHB said the return on that investment just doesn’t make sense for most buyers, as it can take as long as 90 years for homeowners to see a payback on this investment.