HUD rescinds modern energy mandate
The Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) announced that they are rolling back minimum energy-efficiency mandates for certain single-family and multifamily housing programs. These were introduced in 2024, the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019. This announcement comes as industry associations continued to call for more relaxed standards to increase production and affordability.
“While NAR believes building high-performing energy efficient and quality homes nationwide is necessary to address the supply crisis, we are encouraged by the agencies’ desire and efforts to provide builders with the most flexibility in meeting energy efficiency measures,” 2025 REALTOR® President Kevin Sears in an August letter to HUD.
HUD Secretary Scott Turner referred to these energy mandates a burden to the potential American homeowner. “Ending burdensome regulations and improving mortgage affordability supports increased housing supply and pushes affordable homeownership back within reach for American families,” said Secretary Turner.
It is important to note that this does not completely eliminate energy efficient housing mandates, but reverts to an older version.
“Research shows that adopting these standards could have added between $9,600 and $21,400 to the price of a new home depending on the climate zone,” said National Association of Home Builders Chairman Bill Owens. “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.”
