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News July 2, 2026

DOE analysis finds 2024 IECC would significantly increase housing construction costs

The Department of Energy released an analysis finding that nationwide adoption of the 2024 International Energy Conservation Code would increase residential construction costs by more than $9.2 billion annually compared with the 2006 code levels, adding more than $127 billion in cumulative costs nationwide, according to the agency’s website.

DOE’s analysis says if states choose to update their energy codes to the 2024 IECC, construction costs for a typical single-family home could increase by as much as $14,000, which could force American families to pay thousands of dollars more upfront for a new home. According to DOE, in most states, estimated payback periods for energy savings exceed 10 years, with some exceeding 20 years.

DOE sent a letter to the International Code Council urging it to emphasize affordability, transparency and fuel-neutral energy efficiency during future code revisions. DOE also recommended removing requirements for onsite energy generation, electric vehicle infrastructure and greenhouse gas avoidance that “increase construction costs, lengthen payback periods, and reduce consumer choice.”

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