Energy code update adds $14,000 to new U.S. home costs

States that adopt the 2024 International Energy Conservation Code could see construction costs for a typical single-family home rise by $14,000, the Department of Energy stated on June 26. The code sets minimum energy-efficiency requirements for residential and commercial buildings. It is developed by the International Code Council and can be adopted voluntarily by states and local jurisdictions.

The Department of Energy calculated that adopting the 2024 code would increase residential construction costs by more than $9.2 billion annually compared with 2006 levels, adding more than $127 billion in cumulative costs nationwide. In most states, estimated payback periods for the added costs exceed 10 years, with some exceeding 20 years.

The National Association of Home Builders said the 2024 code includes requirements for heat or energy recovery ventilation systems, energy-efficient appliances, and onsite renewable energy resources. When the code was approved in March 2024, the International Code Council projected it would improve energy efficiency by roughly 10 percent for commercial buildings and 6.5 percent for residential buildings.

15, the Department of Energy sent a letter to the International Code Council expressing concerns that the code had expanded beyond energy efficiency into onsite energy generation and greenhouse gas emissions. The department urged the council to focus on provisions that deliver clear cost savings and efficiency advances.

The Department of Energy said it would continue implementing an executive order issued March 13 that directs federal agencies to review and, where appropriate, eliminate unduly burdensome energy-efficiency requirements in housing. In a March 13 statement, the Department of Housing and Urban Development said regulatory costs add nearly $94,000 to the price of a new single-family home, with green energy mandates alone raising costs by $30,000.