Indiana is pushing back against new federal energy standards that, according to state officials, threaten to price out thousands of Americans from the housing market. Attorney General Todd Rokita has joined forces with 15 other states and the National Association of Home Builders to challenge regulations that could hike the price of new homes. A recent analysis by the NAHB suggests that these changes could add as much as $31,000 to the cost of a new home, potentially delaying any return on investment for the homeowner by up to 90 years.
The bone of contention centers around new standards from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) that mandate HUD- and USDA-financed new single-family home construction to comply with the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019. According to the NAHB, for every $1,000 increase in the median price of a home, more than 100,000 American households are squeezed out of the market. Rokita underscored his position, stating, "In their name, we are rejecting this latest liberal crackpot whim with this lawsuit that if successful will help keep already terrible home ownership and rental costs from going through the roof. We’re seeing it more and more. We will continue standing up for homeowners and renters and fighting back against federal overreach," as reported by the Indiana State Government.
The critical stance is mirrored by Rick Wajda, CEO of the Indiana Builders' Association, who argued that the federal policy acts as a hindrance to new construction at a crucial time. "At a time when Hoosiers are struggling to qualify for a mortgage or make a rent payment, this federal policy is the last thing our potential customers need," Wajda said in a statement obtained by the Indiana State Government. The IBA has expressed gratitude for Rokita's efforts to curtail what they consider obstructive financial impacts on Indiana's prospective homeowners and renters.
However, the federal agencies see the introduction of these standards as a necessary step in driving down the production of affordable housing that meets energy conservation goals. The agencies concede that their initiatives will, indeed, impact the housing market, but emphasis is on the long-term benefits of energy efficiency over immediate cost. Officials maintain that meeting the 2021 IECC and ASHRAE 90.1-2019 standards will contribute towards a more sustainable future for all, including those hardworking families now caught in the crossfire of policy and practicality.
