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Green technology

Rush-to-Green Building Codes Drive Up Housing Costs in North Dakota

Strategic Insights

— 1 min read

Congresswoman Julie Fedorchak (R-ND) criticized Biden-era federal energy code mandates at an Energy Subcommittee hearing, citing how they drive up the price of new homes by as much as $31,000 in North Dakota. The costly mandates make housing less affordable in the state, sidelining states' ability to adopt standards that fit their needs. Fedorchak emphasized the importance of empowering states to establish their own codes, as they have the freedom to do so now.

Key Takeaways:

  • The 2021 International Energy Conservation Code can add more than $22,000 to the price of a home in North Dakota, with builders estimating up to $31,000 in additional costs.
  • It will take homeowners in North Dakota up to 90 years to recoup the costs of the standards, making the mandates impractical.
  • States have the freedom to establish their own building codes, but many lack the resources to do so effectively.
  • The National Association of Home Builders advocates for states to tailor building codes to their unique needs and locations.
  • Several states, including Texas, Washington, California, and North Carolina, have successfully implemented their own building codes.
  • The Biden administration's adoption of green agenda federal standards through the ICC has prioritized environmental concerns over cost-efficient home construction.
  • The adoption of these standards by Fannie Mae and Freddie Mac could have a significant impact on the U.S. housing market.

Statistics:

  • The 2021 International Energy Conservation Code can add $22,000 to the price of a home in North Dakota.
  • Builders estimate that the code can add up to $31,000 in additional costs.
  • It will take homeowners in North Dakota up to 90 years to recoup the costs of the standards.
  • Several states, including Texas, Washington, California, and North Carolina, have successfully implemented their own building codes.

Sources:

  • Office of North Dakota Rep. Julie Fedorchak
  • National Association of Home Builders
  • International Code Council (ICC)
  • USDA
  • VA
  • HUD
  • Fannie Mae
  • Freddie Mac

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