New York Housing Leader Warns Congress Gas Bans Undermine Affordability

Michael Fazio, executive director of the New York State Builders Association, told Congress today that energy mandates are driving up construction costs and deepening the housing affordability crisis.

Testifying on behalf of the National Association of Home Builders (NAHB) at a House hearing on how state and local gas bans affect housing costs, Fazio said government should not decide how homes are powered. “Families should be able to choose the energy sources and appliances that best fit their homes and budgets,” he told lawmakers. “Some may choose electricity, while others may prefer natural gas or propane. Those options should compete on cost, performance, reliability and consumer preference.”

Fazio urged Congress to pass the Energy Choice Act, which would preserve home owners’ and renters’ access to affordable, reliable and practical energy options by barring state and local governments from banning or restricting specific energy sources.

That choice has already been removed in New York, the first state to ban natural gas and other fossil fuels in most new buildings.

“I see firsthand what that means for builders and home buyers,” Fazio said. “In colder climates, fully electrifying a new home can add more than $15,000 to construction costs. For families already struggling to buy a home, that can mean the difference between qualifying for a mortgage and being priced out.”

New York and the nation already face rising electricity demand and constraints on generation and transmission infrastructure. The December 2022 blizzard in Buffalo underscored the risks of losing power and heat during extreme weather, when hurricane-force winds, heavy snow and widespread outages contributed to 47 deaths in the area.

“That experience shows why a diverse energy mix is so important,” Fazio said. “As electricity demand rises, meeting the nation’s energy needs will require an all-of-the-above approach that includes renewables, nuclear power, natural gas and other technologies.”

Fazio said that while NAHB supports improving energy efficiency and builders continue adopting new technologies and construction practices, families must retain the ability to choose the appliances and energy sources that best fit their homes and budgets.

“Builders need the flexibility to serve their buyers and communities,” Fazio said. “Policies that shape how homes are built and powered should deliver real benefits without making housing less affordable or reducing consumer choice.”