New Homes Rise with Strengthened Building Energy Codes
Recent studies show that updated building energy codes have not slowed new home construction, despite claims from some large builders like D.R. Horton and the National Association of Home Builders. States that adopted the 2021 International Energy Conservation Code continued to build homes at rates consistent with national trends, disproving assertions that stricter codes constrain housing supply. These modern codes, which include stronger insulation and air-sealing requirements, lower energy use and utility bills, making homes more affordable and resilient without reducing production. More than 250,000 new single-family homes have been built or permitted in states that adopted the new codes, with multifamily housing construction following similar trends.
The evidence suggests that housing market fluctuations are tied to broader economic factors—not energy codes. D.R. Horton’s own financial filings cite interest rates, employment and material costs as major influences, while factors like zoning restrictions and labor shortages continue to challenge housing production. In contrast, energy-efficient codes enhance long-term affordability by reducing residents’ energy costs and improving comfort and safety. The data make clear that improving energy efficiency and increasing housing supply are not conflicting goals; they can and should progress together to create more sustainable and affordable communities.
