Energy Codes and Affordability

Energy codes play a critical role in improving the efficiency of residential and commercial buildings. They ensure that new construction meets minimum energy performance standards, which reduces energy consumption and provides long-term financial savings for both renters and owners. This paper explores the affordability impacts of energy codes in residential construction, focusing on how these codes affect home buyers, renters, and other stakeholders, and provides a better understanding to entities that have the authority to adopt energy codes, and anyone interested in learning how these codes affect affordability.

The analysis includes various metrics for cost-effectiveness—such as life cycle cost, cash flow, and simple payback—drawing on studies from Pacific Northwest National Laboratory (PNNL), US Department of Housing and Urban Development (HUD), and state-level energy programs. Key themes include the advantages of stretch codes, incentives to support code adoption, and the broader policy context that influences housing costs. Special emphasis is given to the impact on renters, highlighting how energy codes can reduce energy burdens for those who often face financial challenges in accessing efficient housing. The paper concludes by discussing future research opportunities to promote awareness and support for energy efficiency, ensuring that advanced energy codes help foster a more equitable housing market.

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