NAHB Opposes Energy Codes Provision in Build Back Better Act

Codes and Standards
Published

NAHB has sent a letter to House Energy and Commerce Committee Chairman Frank Pallone (D-N.J.) and members of his committee expressing strong opposition to a provision in the Build Back Better Act that would exacerbate the current housing affordability crisis and limit energy choice to consumers as a result of aggressive energy efficiency requirements in model building energy codes.

Specifically, the legislative language appropriates $300 million to provide incentive funding for states and local governments to adopt a building energy code that meets or exceeds the zero-energy provisions in the 2021 International Energy Code Council (IECC).

In expressing our opposition to this plan, NAHB stated that “these targets are not appropriate or cost-effective for many jurisdictions; rather, the Department of Energy should help states advance the codes in a manner that best fits the needs of state and local governments. Section 30433 [the building codes section of the bill] will result in an increase in the cost of homes, which may encourage people to remain in older, less energy-efficient homes.”

NAHB further told lawmakers that a failure to consider the true economic costs of required energy-use reductions in model building energy codes and declining to establish reasonable payback periods for these investments will result in fewer families being able to achieve the American dream of homeownership. We continue to work with lawmakers to find more appropriate and cost-effective ways to increase energy efficiency.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics | Housing Affordability

Feb 24, 2026

Falling Mortgage Rates Make Homeownership Possible for Millions of Households

The average interest rate on a 30-year fixed-rate mortgage fell to around 6% last week, the lowest rate borrowers have seen in close to three years. Borrowers will not only enjoy lower monthly payments at that rate, but it also makes homeownership possible for millions more.

Material Costs

Feb 23, 2026

Supreme Court Strikes Down Trump’s Tariffs – But Uncertainty Persists

The Supreme Court on Feb. 20 ruled that President Trump’s attempts to use emergency powers under the International Emergency Economic Powers Act (IEEPA) was not valid. But Trump still has wide latitude in setting tariff policy and announced a new global tariff of 15%. American consumers and businesses are unsure how any new tariffs will affect them.

View all

Latest Economic News

Economics

Feb 24, 2026

Young Adult Headship Rates in 2024: Cyclical Slip or New Equilibrium?

Reversing the post-pandemic rebound, the headship rates among young adults (the share of the population heading their own households) declined in 2024, according to NAHB’s analysis of the American Community Survey (ACS) data.

Economics

Feb 23, 2026

A 25-Basis-Point Decline in the Mortgage Rate Prices-In 1.42 Million Households

Housing affordability remains a critical challenge nationwide, and mortgage rates continue to play a central role in shaping homebuying power. Although rates have declined from the recent peak of about 7.6% in 2023 to around 6.01% as of February 19,2026, they remain elevated relative to typical levels in the 2010s.

Economics

Feb 20, 2026

New Home Sales Close 2025 with Modest Gains

New home sales ended 2025 on a mixed but resilient note, signaling steady underlying demand despite ongoing affordability and supply constraints. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that while month-to-month activity shows a small decline, sales remain stronger than a year ago, signaling that buyer interest in newly built homes has improved.