Tracy Doriot: Governor should pause costly new energy code requirements to reduce delays, rising costs for homebuyers
Between the rising cost of housing and the extremely limited supply in the Spokane area, many families are finding themselves left behind when it comes to the American dream of homeownership.
In fact, according to a recent study by the National Association of Home Builders, the median price of a new home in the Spokane/Spokane Valley region is $411,934, requiring $90,357 in income to qualify for a mortgage. More than 76% of families in your area are already priced out.
In an effort to address just one part of the rising costs and limited supply, not just in Spokane but across the state, the Building Industry Association of Washington (BIAW) recently asked Gov. Jay Inslee to consider suspending implementation of the state’s new energy codes until April .
Why? Since the state started implementing the new code in February, homebuilders have seen an average of $15,000 to $20,000 in increased construction costs, all of which add to the price families pay for new homes.
As president of the BIAW and a custom home builder with more than 43 years in the construction business, I know firsthand how the new energy code is affecting our ability to provide new homes for families in Washington.
Aside from the added costs from the new energy code requirements, our state’s builders are experiencing the massive product supply issues confronting other industries, delaying construction projects and increasing the costs even further.
We are seeing substantial delays in products like HVAC components, such as furnaces and heat pumps, energy-efficient windows and insulation.
We are also struggling to source the 400-amp service panels now required due to all the additional electrical components required and delivery times are no longer being provided by manufacturers. Now insulators are also running behind, which delays projects even further.
While we recognize the challenges the governor has faced during these tumultuous times, we are asking him to take a serious look at supply chain disruptions and housing costs and provide much needed relief.
Homes are more important than ever. Providing relief from these changes will help stabilize the supply chain and save current homebuyers tens of thousands of dollars.
Installing a compliant heat pump is particularly difficult as suppliers struggle to keep up with demand. Lead times have increased from 30 days to 90 days, and costs for those systems have increased up to $6,900, according to one residential contractor.
That same contractor shared that windows compliant with the new code are taking up to 30 weeks for delivery, as there is only one Northwest manufacturer producing them. Windows compliant with the previous code are available in just eight weeks. Prices for the new code-compliant windows are also 40-50% higher.
The problem isn’t limited to the Spokane area. The average new home price in Washington is over $522,000–meaning roughly three-quarters of families statewide are priced out. For every $1,000 increase 2,500 families are priced out of new home ownership opportunities.
Pausing implementation until April will benefit local governments that are facing strained revenue and staffing shortages, businesses related to the supply chain of residential home building, and the burgeoning affordable housing deficit.
While we recognize the new code will eventually go into effect, granting this pause allows builders and industry leaders to make the necessary adjustments to their operations without hasty decision-making and less-than-thorough implementation, saving time and money for all.
Tracy Doriot of Doriot Construction in Vancouver, Washington, is the 2021 president of the Building Industry Association of Washington.