Biden Administration Releases Decarbonization Plan for Homes and Buildings
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.
Latest from NAHBNow
Apr 17, 2026
9 NHE Grants Boost Residential Construction VisibilityThe National Housing Endowment (NHE), NAHB's philanthropic arm, created its Homebuilding Education Leadership Program (HELP) to increase the number of qualified graduates entering the home building industry. Since 2009, HELP has invested more than $6.2 million in grants to 60 colleges and universities.
Apr 16, 2026
Iran War Adds to Economic HeadwindsA multidimensional supply shock is weakening the U.S. economy, fueled by the delayed effects of the 2025 trade wars and tariffs, elevated oil prices, and persistent policy uncertainty. NAHB Chief Economist Dr. Robert Dietz provides a high-level summary of key economic markers.
Latest Economic News
Apr 17, 2026
Count of Second Homes Declines in 2024In 2024, the number of second homes in the U.S. was 6.2 million, accounting for 4.3% of the nation’s housing stock, according to NAHB estimates. This reflects a modest decline from 2022, when the number reached 6.5 million. This decline suggests some cooling following the pandemic-era surge in second home demand.
Apr 16, 2026
Young Adults Report More Interest in the Construction Trades: 2026 SurveyNAHB estimates the U.S. has a structural housing deficit of 1.2 million units. Among the myriad of headwinds home builders face trying to close that gap is the industry’s chronic shortage of workers in the construction trades.
Apr 15, 2026
Builder Sentiment Posts Notable Decline on Economic UncertaintyEconomic uncertainty coupled with rising building material costs and interest rates resulted in a sharp decline in builder sentiment in April as the housing market enters into the heart of the spring buying season.