2024 has brought additional energy efficiency mandates that are poised to have ripple effects on builders and homeowners nationwide.

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) have adopted new standards with regard to new home construction. In essence, only homes built to the 2021 International Energy Conservation Code (IECC) will be approved for Federal Housing Administration (FHA) financing for buyers.

This decision has far-reaching implications in the construction industry and has sparked significant debate within the housing sector. In fact, the National Association of Home Builders (NAHB) has raised concerns about the potential impact on housing affordability in its article “New Nationwide Codes Mandate a Major Blow to Housing Affordability,” particularly for first-time homebuyers. Housing affordability has already become a major challenge in the United States, and some worry these new mandates will only exacerbate the problem.

With the standards in place, builders and homeowners are searching for high-performance, cost-effective building materials that can help lower construction costs while delivering the energy efficiency to meet the 2021 IECC standards. Many of them are turning to manufacturers such as OX Engineered Products.

Understanding the Impact of the 2021 IECC

The 2021 IECC is designed to improve energy efficiency in new homes, thereby reducing overall energy consumption. It has been embraced by jurisdictions across the country. However, meeting these standards does not come without costs. Literally. In fact, NAHB points out that building to this code can add up to $31,000 to the price of a new home. For first-time homebuyers, particularly those relying on HUD or FHA loans, this increased cost can be a purchasing barrier, particularly with rising real estate costs in general.

However, energy efficiency does not have to be prohibitively expensive. By incorporating advanced, integrated building materials that offer superior performance without excessive costs, builders can meet the 2021 IECC standards while keeping homes at a more modest price point.

The Integrated, Energy-Efficient Solution

OX Engineered Products offers an ideal solution to this complex equation.

The 4-in-1 OX-IS weatherization system is designed to not only streamline construction but save builders on costs while delivering long-term energy efficiency for homeowners. The integrated structural continuous insulation material possesses four layers: structural sheathing, continuous insulation, an air barrier, and a water-resistive barrier. By combining four products into one, builders can help minimize construction costs (lowering the price of the home for buyers) while aiming to meet the latest IECC standards.

Enhanced Thermal Performance: OX-IS provides continuous insulation, reducing thermal bridging and improving the overall energy efficiency of the building envelope. This can help new homes meet the 2021 IECC standards more readily, especially when combined with other energy-efficient measures such as spray or batt insulation in the wall cavities, a proper HVAC system, and high-performance windows.

Cost-Effective Solution: While some energy-efficient materials can be costly, OX-IS offers an affordable option that helps builders and homebuyers avoid any steep price increases associated with the new code requirements. By combining multiple products into one, it keeps builders from having to purchase house wrap, insulation, and sheathing products separately. Material prices have risen over the last few years, while OX’s product pricing has remained stable.

Structural Integrity: In addition to its insulating properties, OX-IS also provides structural sheathing, reducing the need for additional materials and labor. In essence, builders no longer have to worry about purchasing OSB, which leads to substantial savings, particularly when it comes to larger-scale multifamily construction.

The Rocky Mountain Institute (RMI) advocates for the ruling for the IECC standards. RMI reported that during a 7-day heat wave and power outage in Houston, TX, a house built to the 2021 IECC would stay at safe temperatures and humidity levels for an entire week. The RMI report states, “Bringing Houston’s housing stock up to the newly finalized HUD-USDA standards would prevent about 80 percent of heat wave-related deaths.”

In addition, for builders, there is a competitive advantage that can be gained. Those who can effectively integrate energy-efficient practices and materials into their projects can market them as more sustainable, appealing to a growing segment of eco-conscious buyers.

Bridging the Gap

The NAHB’s concerns about price hikes and overall affordability are valid, underscoring the importance of using innovative materials and construction techniques to mitigate these costs. OX Engineered Products is committed to providing solutions that not only meet the most stringent energy efficiency standards but also keep new homes within reach for first-time homebuyers. This is critical for these buyers to be able to secure FHA-insured mortgages and ultimately buy a home.

By incorporating OX-IS, builders can create homes that are both energy-efficient and more affordable. This approach helps to comply with the 2021 IECC and supports the government’s goal of increasing the supply of new homes without pricing out the most vulnerable buyers.