In 2024, new energy efficiency mandates are impacting builders and homeowners nationwide. The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) now require homes to meet the 2021 International Energy Conservation Code (IECC) for Federal Housing Administration (FHA) financing.
This decision has raised concerns about housing affordability, particularly for first-time home buyers. The National Association of Home Builders (NAHB) noted that building to this code can add up to $31,000 to the price of a new home, posing a significant barrier, especially with rising real estate costs.
To meet these standards affordably, many are turning to manufacturers that can offer integrated products at a cost-competitive price point. For example, weatherization systems that combine structural sheathing, continuous insulation, an air barrier, and a water-resistive barrier into a single product are becoming more popular. These types of materials help reduce construction costs while meeting the 2021 IECC standards.
Understanding the Impact of the 2021 IECC
The 2021 IECC aims to improve energy efficiency in new homes, but achieving these standards can be costly. NAHB highlights the potential $31,000 increase in home prices due to these new requirements, creating a barrier for first-time buyers relying on HUD or FHA loans.
However, by using advanced, integrated building materials, builders can meet the standards without excessive costs. OX Engineered Products provides an ideal solution with its four-in-one OX-IS weatherization system.
The Integrated, Energy-Efficient Solution
Integrated structural sheathing materials can significantly streamline construction and save on costs while delivering long-term energy efficiency. Some even offer a multilayer design—for example, structural sheathing, continuous insulation, air barrier, and water-resistive barrier—helping to minimize construction expenses and can help meet the latest IECC standards.
Enhanced Thermal Performance: Integrated materials that provide continuous insulation help to reduce thermal bridging and improve energy efficiency. This supports compliance with the 2021 IECC, especially when combined with other energy-efficient measures such as proper insulation, HVAC systems, and high-performance windows.
Cost-Effective Solution: Combining multiple products into one helps avoid steep price increases associated with new code requirements. It eliminates the need for separate purchases of housewrap, insulation, and sheathing, keeping costs stable despite rising material prices.
Structural Integrity: Materials that include a structural layer meet the needs for the required structural sheathing on a home, reducing the need for additional materials—such as oriented strand board (OSB)—and labor. In this scenario, builders no longer need to purchase OSB or sheathing separately, leading to substantial savings.
Unlike the NAHB, the Rocky Mountain Institute (RMI) supports the IECC standards, noting that homes built to these standards can maintain safe temperatures during extreme conditions, preventing heat wave–related deaths. Additionally, builders can gain a competitive advantage by marketing energy-efficient homes to eco-conscious buyers.
Bridging the Gap
The NAHB's concerns about affordability underscore the importance of innovative materials and techniques. OX Engineered Products is dedicated to offering solutions that meet stringent energy efficiency standards while keeping homes affordable for first-time buyers, ensuring they can secure FHA-insured mortgages.
By using OX-IS, builders can create energy-efficient, affordable homes that comply with the 2021 IECC, supporting the government's goal of increasing the supply of new homes without pricing out vulnerable buyers. Learn more.
