The Biden administration’s plan to make new homes more energy-efficient could raise their prices by $20,000 to $30,000, causing worries about affordability despite possible long-term savings on energy bills.
Supporters Claim Energy Efficiency Rules Will Save Homebuyers Money and Reduce Pollution
According to the published article in The New York Sun, the Biden administration is considering new rules to make newly built homes more energy-efficient. These rules would apply to homes financed by Fannie Mae and Freddie Mac. Sandra Thompson, director of the Federal Housing Finance Agency, said the agency is studying this issue and will have recommendations by the end of June. Similar rules were already adopted by other federal agencies in April, requiring new homes with federal loans to meet strict energy standards.
Critics like Jim Tobin, president of the National Association of Home Builders, say these rules could make new homes $20,000 to $30,000 more expensive, making it harder for people to afford them. He argues that most of the mortgage market will be affected by these rules, raising home costs at a time when many people can’t afford it. Tobin believes the upfront costs are too high, even if the homes save money on energy bills over time.
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$20,000 to $30,000: Biden Administration’s Energy Efficiency Mandates for New Homes Face Criticism Amid Housing Affordability Crisis (PHOTO: Fox Business)
Energy Efficiency Rules Could Save Homebuyers $1,000 Annually and Reduce Pollution
Furthermore, supporters of the energy rules argue that the long-term savings are worth it. Mark Kresowik from the American Council for an Energy-Efficient Economy says homebuyers can save nearly $1,000 a year on energy bills, which would cover the higher costs in about 18 months. They also say these rules will improve health, reduce energy use, and cut pollution. However, Tobin thinks a better way to address climate change is to make older homes more energy-efficient, instead of making new homes more expensive.
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