Energy Department’s Push for Green Building Codes Will Drive Up Housing Costs, Experts Warn
(REUTERS/Octavio Jones)
The Biden administration is investing hundreds of millions of dollars to encourage states and cities to adopt environmentally-friendly building codes. However, experts caution that this initiative will further inflate housing prices, already at sky-high levels.
President Joe Biden’s Energy Department recently announced a $400 million program aimed at incentivizing state and local governments to implement building codes that reduce greenhouse gas emissions and combat the climate crisis. However, complying with these codes can add up to $31,000 to the cost of a new home, according to an analysis by the National Association of Home Builders.
In addition, the Energy Department is providing $160 million to governments that adopt “zero energy” building codes, which require residential buildings to incorporate enough renewable energy to achieve zero-net carbon.
This spending comes at a time when American families are struggling to afford homes, with the median U.S. home price reaching nearly $414,000 in July, the second highest ever recorded. It also reflects the Biden administration’s tendency to prioritize climate change goals over consumer choice, as evidenced by their environmental regulations targeting various household appliances.
The National Association of Home Builders argues that the administration’s push for restrictive building codes is unnecessary, as new buildings are already highly energy efficient. They also contend that these codes add unnecessary costs to housing production, exacerbating the affordability crisis.
Policy analyst Jordan McGillis from the Manhattan Institute echoes these concerns, stating that Biden’s green building code program will inevitably drive up housing costs. He also questions the program’s effectiveness in achieving climate goals, pointing out that residents in areas with high housing costs often end up emitting more carbon due to larger homes and longer commutes.
Despite these criticisms, the Energy Department claims that their green building code program will save consumers billions in the long run, as more efficient buildings require significantly less energy for heating and power. However, the National Association of Home Builders found that the increased costs associated with the administration’s preferred “energy conservation code” would take homeowners up to 90 years to recoup through lower energy bills.
The Energy Department’s $400 million program is funded through the Inflation Reduction Act, Biden’s flagship climate legislation that provides over $1.2 trillion in green energy subsidies. Additional funding is expected to be announced to further encourage the adoption of new green building standards by state and local governments.
If states and cities take advantage of the green building code funding, it could lead to the eventual phase-out of natural gas in new buildings, similar to what is already happening in California and other progressive states. This transition could be facilitated by adopting decarbonization measures proposed by environmental groups, such as the Natural Resources Defense Council’s building code that promotes the use of electric equipment over fossil fuels.
How might the implementation of green building codes impact housing prices and potentially create a barrier to homeownership for certain Americans?
Ers warns that the cost of implementing these green building codes will be passed on to homebuyers and ultimately result in even higher housing prices. This could create a barrier to homeownership for many Americans, particularly those already on the edge of affordability.
Proponents of the initiative argue that the long-term benefits of reduced greenhouse gas emissions and energy savings outweigh the upfront costs. They believe that investing in sustainable infrastructure now will lead to a more sustainable future and mitigate the effects of climate change.
However, opponents argue that the burden of these costs will fall disproportionately on lower and middle-income families, who are already struggling to afford housing. The additional expenses associated with green building codes may prevent them from entering the housing market altogether or force them to settle for less desirable, older homes that do not comply with these codes.
Moreover, critics argue that these mandates limit consumer choice and infringe on property rights. Homeowners should have the freedom to choose how they want to build and live in their homes, without being burdened with additional costs and regulations. They argue that the market should dictate the adoption of sustainable practices, rather than government intervention and mandates.
Some experts also question the effectiveness of these green building codes in achieving their intended goals. They argue that the costs associated with implementing these codes may outweigh the environmental benefits, especially considering the relatively small contribution of residential buildings to overall greenhouse gas emissions. They suggest that a more comprehensive and balanced approach is needed, one that considers the environmental impact of other sectors, such as transportation or industrial.
In conclusion, while the push for green building codes by the Energy Department may be well-intentioned, experts warn that it will drive up housing costs. The additional expenses associated with complying with these codes may pose a burden on homebuyers, particularly those with lower incomes. The debate surrounding green building codes highlights the trade-off between environmental goals and affordability, as well as the tension between government mandates and consumer choice. It is crucial to strike a balance that considers both the environmental impact and the affordability of housing for all Americans.
Now loading...