HUD Rescinds Housing Policy, Shaving $20,000 Off Home Construction Costs

The policy made new home construction ineligible for USDA or FHA-backed mortgages unless it complied with ‘burdensome’ energy conservation standards.

Housing and Urban Development Secretary Scott Turner walks toward the West Wing following a TV interview at the White House on Feb. 19, 2025. Manuel Balce Ceneta/AP Photo

The Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) rescinded a  policy from the last administration that threatened to raise home construction costs by at least $20,000, HUD said in an April 28 statement.

In April 2024, the two departments announced the adoption of Minimum Energy Standards for newly built single and multifamily homes, with the standards applying to air sealing, window lighting, insulation, lighting, and heating and cooling systems. At the time, the department said that adopting the standards would result in “significant cost savings for residents, reduce energy use and pollution, improve resident health and comfort, and increase resilience in extreme weather events of both single and multifamily homes.”