Overview
- The joint determination, announced Tuesday, drops the 2021 energy code requirement for new homes seeking FHA or USDA mortgages and restores the pre-2024 rules.
- HUD and USDA said the mandate would add about $20,000 to $31,000 to a typical new home, while builders cited $9,600 to $21,400 depending on climate zone.
- Agency leaders argued the rule would slow building, shrink new-home supply, and lengthen permitting and inspection timelines.
- Homebuilder and mortgage groups, including the National Association of Home Builders and the Mortgage Bankers Association, backed the rollback as relief for first-time and rural buyers.
- The 2021 code sought roughly 35% energy savings through tighter insulation, lighting, and ventilation standards, so the reversal favors lower upfront prices over long-run utility and emissions gains.