Energy Codes
DOE Says 2024 Energy Code Could Add Billions in Housing Costs
Agency challenges economics of latest IECC as states weigh code updates

The U.S. Department of Energy is pushing back against the cost of adopting the 2024 International Energy Conservation Code, arguing that its latest analysis shows the model code could substantially increase residential construction costs.
DOE said June 26 that nationwide adoption of the 2024 IECC would add more than $9.2 billion annually in residential construction costs compared with 2006 code levels, amounting to more than $127 billion in cumulative costs. Depending on the state, DOE estimates the additional construction cost for a typical single-family home could reach roughly $14,000.
The findings could factor into decisions by states and local jurisdictions considering updated energy codes, including requirements affecting insulation, air sealing and other parts of the building envelope that can influence roofing and reroofing work.
DOE said its analysis found an average payback period of about 11 years, with estimates reaching 22 years in some states. The department has urged the International Code Council to place greater emphasis on affordability and fuel-neutral energy efficiency and to reconsider provisions related to onsite energy generation, electric vehicle infrastructure and greenhouse gas reduction.
States are not automatically required to adopt the latest IECC. Following DOE's December 2024 determination that the 2024 IECC improves residential energy efficiency, states are required to review their existing codes and determine whether revisions are appropriate.
DOE previously estimated the 2024 IECC would reduce residential energy costs nationally by about 6.6% compared with the 2021 edition. DOE is also reviewing the methodology it uses to assess the affordability and cost-effectiveness of building energy codes. Its current analysis says adopting the 2024 IECC nationwide would add about $57 billion in construction costs compared with codes currently in effect across the states.
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