by NAHB
The Department of Energy (DOE) issued a positive determination that the 2021 International Energy Conservation Code (IECC) contains new requirements that result in an incremental increase in energy efficiency in residential buildings.
The IECC is part of a family of model building codes published by the International Code Council (ICC) and adopted in many jurisdictions around the country, often with specific amendments based on local market and climatic conditions.
DOE reports it came to this conclusion by conducting a technical analysis evaluating the impacts of the updated code relative to the 2018 IECC edition. DOE estimates national savings of approximately:
- 9.38% site energy savings
- 8.79% source energy savings
- 8.66% energy cost savings
- 8.66% carbon emissions
DOE is required by law to issue a determination as to whether the latest version of the IECC includes increases in energy efficiency compared to the previous edition of the code. DOE has one year to publish a determination in the Federal Register after each new edition of the standard/code is published.
States will now be required to certify that they have reviewed the provisions of their residential building code regarding energy efficiency, and made a determination as to whether it is appropriate for them to revise their code to meet or exceed the updated edition of the IECC.
State certifications for the 2021 IECC must be submitted by July 21, 2023.
DOE’s determination is consistent with the analysis released by Home Innovation Research Labs last month that showed similar increases in efficiency. The Home Innovation report also contains the associated cost and cost-effectiveness metrics for the changes in efficiency requirements in the 2021 IECC.
|
|
by NAHB
Changes in prices for softwood lumber products that occurred between April 17, 2020 and July 8, 2021 have added $29,833 to the price of an average new single-family home, and $9,990 to the market value of an average new multifamily home, according to NAHB’s latest estimates. The increase in multifamily value, in turn, translates to households paying $92 a month more to rent a new apartment.
The increases are somewhat less than the April 2020-April 2021 effects NAHB reported three months ago (a $35,872 increase in house price and $119 increase in monthly rent). At first glance, the latest estimates might seem high relative to recent declines in framing lumber prices, but there are a couple of factors to keep in mind.
First, even after the recent declines, framing lumber prices are still roughly twice as high as they were in April 2020. Second, framing lumber is only one of the softwood lumber products used in the average home. NAHB’s estimates also include plywood, oriented strand board (OSB), particleboard, fiberboard, shakes and shingles — in short, any of the products sold by U.S. sawmills and tracked on a weekly basis by Random Lengths.
Moreover, unlike framing lumber, prices of these items have not declined substantially in recent weeks. In fact, since April 2020, the price of softwood plywood has increased by more than 200%, and the price of OSB has gone up by nearly 500%.
A $30K Rise in 15 Months
At the prices reported by Random Lengths on April 17, 2020, the total cost to a builder for all the softwood lumber products going into a home was $16,927 for the products in an average single-family home, and $5,940 for the products in an average multifamily home.
Based on Random Lengths prices reported on July 8, 2021, the costs have risen to $42,882 for the softwood lumber products in an average single-family home, and $14,631 for the products in an average multifamily home. These number represent a 153% ($25,955) and 146% ($8,691) increase in single-family and multifamily builders’ softwood lumber costs, respectively.
Prices to home buyers go up somewhat more than this, due to factors such as interest on construction loans, brokers’ fees, and margins required to attract capital and get construction loans underwritten. As explained in NAHB’s recent study on regulatory costs, for items used during the construction process, the final home price will increase by 14.94% above the builder’s cost.
The bottom line is that the OSB-led changes in softwood lumber prices that occurred between April 2020 and July 2021 have added $29,833 to the price of an average new single-family home and $9,990 to the market value of an average new multifamily home. Based on the average rent-to-value ratio in most recent HUD/Census Rental Housing Finance Survey, the increase in builder cost and market value for a multifamily structure means tenants pay $92 more a month to rent the average new apartment due to the change in softwood lumber prices.
Moreover, even before the latest round of increases, many households at the lower end of the spectrum were being squeezed out of the market for new homes by relatively high prices.
|
|
SCHOLARSHIPS
The HBA supports developing the next generation of workforce through the Scholarship Program.
Congratulations to Spencer Stine, who is the winner of the 2021 Dustin Lenker Memorial Scholarship! Spencer graduated from Dauphin County Technical School and is currently attending HACC and majoring in Technical Design.
|
|
Get Involved! Leadership Position for a Builder Member
The HBA is seeking a Builder Member to serve on the Board of Directors. If you are interested, please contact Kristi at kristi@harrisburgbuilders.com. |
|
Congratulations to Berks Homes for making the NAHB Housing Giants 2021 Special Report! Berks Homes Ranked 148 – up from their previous rankings of 155 out of the top 200. |
|
Tickets are now available for the PAC Cigar & Bourbon night! This pre-NFL game PAC fundraising event will include dinner and other libations. Mark your calendars to join us at the Sons and Daughters of Italy in Harrisburg on September 9. Tickets are $100 per person. Click the button to purchase your tickets today! |
|
The HBA Pyramid Awards will be held at the Colonial Golf & Tennis Club on August 6, 2021 from 5:00 to 8:00 PM. Tickets are $75 per person, and must be purchased by next Friday, July 30, 2021.
|
|
Thank you to Presenting Sponsor F&M Trust and Social Sponsor Swartz Kitchens and Baths for sponsoring this event. You can purchase your tickets online using the above button, or you can email tina@harrisburgbuilders.com to reserve your tickets today! |
|
July 30 is the last day for Parade of Homes applications. Email jannette@harrisburgbuilders.com for more info. |
|
Mark Your Calendars!!! The Parade of Homes Gala will be on Sep. 22, 2021 at the Best Western Atrium and Ballroom. Tickets will be $75 per person and will go on sale August 9; however, remember that each Parade of Homes entry will receive two free tickets to the Gala! |
|
Remember, as a benefit of membership, the Member News and Member Marketplace are available to you. Please send in your submissions (and photos!) by Wednesday every week to
|
|
|
|
|
|
|
