Biden Administration Releases Decarbonization Plan for Homes and Buildings

Advocacy
Published
Contact: Susan Asmus
[email protected]
SVP, Regulatory Affairs
(202) 266-8538

The U.S. Department of Energy (DOE) recently released an ambitious blueprint for decarbonizing buildings in the country, including homes. The stated goal of the plan is to reduce carbon emissions from buildings 90% by 2050 compared with the 2005 baseline, with an interim goal of a 65% reduction by 2035.

Although the blueprint was created in consultation with other federal agencies and includes many state, local and federal policy ideas, it is a non-binding document that does not make specific regulatory or policy proposals.

NAHB is supportive of finding ways to reduce carbon emissions and increase energy efficiency in homes. But the plan laid out by the administration relies heavily on building code changes and a shift to electrification in homes, which would decrease choice for home buyers and owners and increase construction costs for new homes.

The plan does note that existing buildings and homes, especially in disadvantaged communities, are a major source of carbon emissions and most buildings that exist today will still exist in 2050, necessitating an extensive retrofit effort. The document, however, does not offer any new funding solutions for what it notes is the main driver of heating and cooling loads in buildings: The envelope in residential buildings and ventilation in commercial buildings.

In discussing retrofitting or remodeling, DOE noted that it may need to develop contractor standards to “increase the likelihood of quality work performance,” and offered its Energy Skilled certification as an example.

NAHB has consistently argued that the only way to meaningfully reduce carbon emissions from homes is to address existing homes. And many of the required updates will be expensive and should be voluntary for owners.

DOE’s blueprint leans heavily on required changes through standards, codes and regulatory actions. For example, when discussing what actions can be taken at the federal level to “lock in cost-effective performance gains,” the options given are:

  • Appliance efficiency standards
  • Support building energy code development and adoption
  • Support other state/local regulatory actions

As climate risks become more widespread, governments will need to take bold action. But huge leaps in standards, rules, codes and other regulations will disrupt a housing market that is already in an affordability crisis. We must remind policymakers that homes aren’t just units of carbon production; they are where people live, and everyone needs one.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Land Development | Advocacy
Aug 14, 2026
Key Land-Use and Zoning Provisions in Landmark Housing Law

The newly enacted 21st Century ROAD to Housing Act directs the Department of Housing and Urban Development to develop voluntary federal guidelines for state and local zoning best practices. Although not mandatory, the guidelines will help shape how communities are evaluated for federal grants and give states a model for developing their own enabling legislation.

Economics
Aug 13, 2026
Construction Employment Rises Amid a Cooling Labor Market

The overall labor market continued to lose momentum in July, with nonfarm payrolls falling by 23,000 and previous job gains revised sharply lower.

View all

Latest Economic News

Economics
Aug 13, 2026
Building Material Prices Show Growth In July

Residential building material prices, excluding energy, rose 0.4% in July and were up 5.0% from a year ago. Energy prices fell again in July but remained significantly higher than a year ago. Meanwhile, prices for services were down 0.3% over the month but were 6.2% higher than a year ago.

Economics
Aug 13, 2026
Homeownership Rate Edges Down to 65%

The latest homeownership rate declined to 65% in the second quarter of 2026, according to the Census’s Housing Vacancy Survey (HVS). The homeownership rate was unchanged from a year ago, and not statistically different than the rate in the first quarter of the year (65.3%).

Economics
Aug 12, 2026
Inflation Eased Slightly in July

Led by declines in gasoline and diesel prices, inflation eased for the second consecutive month after reaching a three-year high in May. As energy prices moderated, shelter resumed its role as the largest driver of headline inflation, accounting for one-third of the annual increase and over two-thirds of the monthly increase.