Dive Brief:
- The U.S. Department of Housing and Urban Development and the Department of Agriculture announced a rollback of energy efficiency standards for certain single-family and multifamily housing construction projects.
- Energy mandates under the 2021 International Energy Conservation Code added an estimated $20,000 to the cost of a new home and blocked projects that did not meet the standard from federal loans, according to HUD and USDA.
- The National Association of Home Builders lauded the decision to rescind IECC. “By repealing this onerous mandate, the Trump administration is making it easier for builders to construct more housing supply at an attainable price for Americans,” NAHB Chair Bill Owens said in a statement.
Dive Insight:
The U.S. is short millions of homes, according to the Trump administration, which has pledged to cut regulatory red tape surrounding housing construction.
National median home prices reached record highs in 2025, and the number of first-time homebuyers plunged to new lows. Many local governments are exploring regulatory solutions in an effort to boost housing supply, including zoning and building code reforms.
Federal IECC standards added between $9,600 and $21,400 to the price tag of a new home, depending on the climate zone it was located in, according to Owens. Trump had delayed enforcement of the measure since taking office.
“Compliance with the rule would have placed significant new cost pressures on home builders and multifamily developers, making it harder to deliver the affordable, attainable communities that are urgently needed,” Owens said.
The U.S. District Court for the Eastern District of Texas in March blocked the federal standard following a lawsuit filed by NAHB and 15 states.
