Expensive housing didn’t happen overnight, and unfortunately, millennials are left frustrated with the possibility of never being able to afford a home of their own.

Hidden costs drive up home prices

There is more to the cost of a home than the labor and materials that go into building it. In reality, a shocking number of hidden costs drive up home prices for everyone. One of these costs you may not know of is the energy code.

Energy codes are part of Washington’s state building codes. Anyone building or remodeling a home has to follow the building code. The energy code focuses on the energy efficiency of your windows and doors, wall and ceiling insulation, lighting fixtures and heating and cooling units.

Energy codes are important because they help increase energy efficiency, reduce carbon emissions and lower homeowners' utility costs. All positive benefits of having a more efficient home. However, it comes at a price. 

What’s the problem with the energy code? 

The State Building Code Council’s new energy code no longer makes sense for potential home buyers looking to enter the housing market for the first time. 

Estimates are that the cost of complying with the energy code that was approved in 2021 increased the price of a new home by $20,000 - $30,000, as builders work to get the right windows, insulation and heat pumps now required amidst supply chain disruptions. 

Keep in mind that those costs translate to an additional $60,000 to $90,000 over the life of a mortgage. It will take more than 50 years to recover that cost through reduced utility bills from the mandated energy efficiency requirements. 

In other words, the increases in energy efficiency don’t justify the increased cost.

We can fix this 

It’s not too late to fix this issue. We should allow builders the flexibility to meet performance-based goals. Builders have the knowledge and expertise to choose cost-effective materials that also maximize energy efficiency. It’s a win-win for homeowners.

We should trust the building experts. A performance-based approach lets builders use their knowledge and expertise to find the best materials and appliances without adding unnecessary costs. It shouldn’t matter how we get there; it should only matter that we met the stated energy goals.   

Join the Fight

It’s our time to stand up and fight for affordable housing for everyone. Download our 10-step action plan to learn how together, we have the power to change the narrative and make homeownership an option for millennials once again.