Administration Rescinded Energy Code for New Home Construction
Homebuilders may see construction costs drop by $30,000 following the removal of a federal energy mandate.
Updated on Sept. 25, 2026 in Residential
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Is reducing federal construction and energy regulations the right approach to make housing more affordable?
HUD Secretary Scott Turner announced the administration has rescinded a Biden-era energy code requirement for residential projects. The move aims to lower development costs for single-family housing as the national median home price stays above $400,000.
Why it matters
Federal officials identified the repealed energy mandate as a significant barrier to residential development and a major contributor to high construction costs. Reducing these regulatory requirements is a central pillar of the current effort to mitigate the national housing affordability crisis.
The FHA assisted 1.5 million people in buying homes during 2025, with first-time buyers accounting for 80% of that total. The rescinded energy code requirement previously could have added $30,000 to the cost of a single-family project.
The players
Scott Turner
As HUD Secretary, he oversees the administration's housing affordability policies and federal housing programs.
Federal Housing Administration
A federal agency providing mortgage insurance on loans made by approved lenders to help people buy homes.
The details
The administration is leveraging executive orders to strip away regulatory barriers that drive up development costs. By removing the energy code, officials aim to make construction more affordable, including initiatives focused on modular, manufactured, and 3D-printed housing. Additionally, the department is working to phase out a policy that permitted non-citizens to live in taxpayer-funded housing units.
Timeline
The Federal Housing Administration assisted 1.5 million homebuyers throughout 2025.
HUD Secretary Scott Turner detailed these policy changes on September 24, 2026.
Money Landscape
This policy shift marks a reversal of energy code mandates established during the Biden administration. It reflects a broader pivot in national housing strategy that prioritizes reducing regulatory barriers over specific environmental compliance standards for new construction.
Prospective buyers may see price growth moderate in new construction markets where the $30,000 in savings is passed on by developers. Households should consult with a professional to monitor if these regulatory changes impact the final costs of new-home purchase contracts.
The takeaway
The administration is cutting regulatory requirements to lower the cost of building new homes. Prospective buyers should review the impact of these changes on local new-construction pricing as developers adapt to the updated standards.
Further reading
Learn more about shifting national housing policies at Residential.
Live Poll
Is reducing federal construction and energy regulations the right approach to make housing more affordable?
