Federal Rule Poised to Boost Energy-Efficient Housing in North Carolina
Despite North Carolina’s current freeze on building energy codes, a new federal regulation is expected to significantly boost energy efficiency in the state’s housing sector. Under an update to a 2007 energy law, new homes financed with federally-backed mortgages must now comply with 2021 model energy codes. This marks a substantial upgrade from the state’s outdated standards, promising to improve insulation, window quality, and other essential features. As a result, this rule could affect over 10% of new home sales, primarily benefiting lower-income and first-time buyers who will see immediate reductions in their utility costs, thereby increasing overall affordability and comfort in their homes.
The implications of this federal rule extend beyond North Carolina, with potential ripple effects across other states facing similar resistance to updated energy-saving codes. Advocates emphasize the importance of these requirements for protecting vulnerable homebuyers during the climate transition. Furthermore, if successful in extending these standards to the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, the impact could extend to up to 70% of new home loans nationwide. This creates a pivotal moment for builders, who will need to adapt to these standards or risk losing access to significant financing opportunities, ultimately shaping a more sustainable future in homebuilding across the country.