Are You Prepared? Biden’s Climate Plan Could Add $31,000 to Your Mortgage

Song_about_summer /
Song_about_summer /

As the Biden administration rolls out its latest bid to save the planet—one energy-efficient window at a time—the latest mandate from HUD and the USDA has the housing industry up in arms. Critics are labeling it less of a practical solution and more of a fiscal nightmare for potential homeowners.

Dubbed an essential move to tackle the ever-looming threat of climate change, these new energy efficiency rules for homes financed with federal dollars come at a hefty price. Carl Harris, the chairman of the National Association of Home Builders (NAHB), didn’t mince words when he blasted the mandate as a “senseless nationwide codes mandate,” prophesying doom for the affordability of the American Dream.

The mandate, which puts a $31,000 premium on the average new home, is stirring more than just a mix of mortar and bricks; it’s brewing a storm of discontent among those who build them. As the administration paints a rosy picture of long-term savings and environmental benefits, the ground reality, according to builders, could not be more different—or dire.

Proponents argue that these regulations will significantly reduce carbon emissions. Still, critics from the NAHB, also known as the National Association of Home Builders, and the KCHBA, also known as the Home Builders Association of Greater Kansas City, contend they will drive up housing costs.

The Biden administration, ever the optimist, assures us that its new mandate won’t dent in housing affordability or availability. They claim that what they call a “modest” uptick in construction costs will magically transform into hefty energy savings down the road. Yes, folks, the Biden administration wants you to believe that you will save thousands over the lifetime of your home. Let’s just hope those savings kick in before the next ice age!

However, the KCHBA’s analysis paints a different picture. Their research suggests that the average new home in Kansas City could see a price hike of over $31,000, with minimal energy cost savings. This discrepancy raises concerns about the true impact of the mandate on homeowners, particularly those with lower incomes.

The NAHB estimates that the average new home could increase by over $30,000, a cost that would take nearly five decades to offset through energy savings.

Industry stakeholders are sounding the alarm over more than skyrocketing costs—they’re worried this mandate might scare off new construction projects. With housing inventory already as elusive as a needle in a haystack, driving up costs could turn new builds into a treasure hunt for a pot of gold at the end of a rainbow. The result? A frantic scramble for existing homes, pushing prices through the roof—literally.

Despite facing more arrows than a pincushion at a sewing circle, the Biden administration stays steadfast in its climate crusade. They’re preaching the gospel of carbon reduction and energy efficiency in housing, but don’t worry, they’ve got one eye on the purse strings, too. They claim they’re all about balancing lofty climate goals with pesky concerns like affordability and accessibility. How they plan to walk this tightrope remains a mystery, but who doesn’t love a good magic trick?

As the debate continues, it’s clear that finding common ground will be essential. Policymakers and industry stakeholders share a goal of addressing climate change while ensuring access to affordable housing for all Americans. Finding solutions that achieve these dual objectives will require collaboration and compromise from all parties involved.

In the meantime, prospective homebuyers are left grappling with the mandate’s uncertainty. With housing prices already at record highs nationwide, any additional cost increases could further strain their budgets. Ultimately, the true impact of the mandate on housing affordability remains to be seen, but its implications are sure to be felt by homeowners and renters alike.