New EV building codes will drive up home construction costs considerably
- Rep. Luis Terrazas (District 39)
- Aug 16, 2024
- 3 min read

(Photo by Jim Thompson)
State Rep. James Townsend
At a time when new home construction costs can reach as much as $1,000 per square foot, any new building codes that would increase construction costs seem shortsighted and unnecessary.
Unfortunately, builders, architects, and home buyers are frequent casualties in The Green New Deal.
This was again proven true when little fanfare and even less input from the public, the Construction Industries Commission — a nine-member body responsible for establishing rules, regulations and standards for the construction industry in New Mexico — adopted in late January a whole new set of building codes for new single-family homes.
Claiming these new building codes will improve energy conservation, the commission fails to mention that their actions will also make the price of new homes considerably more expensive.
The consequences of these new codes will result in pricing many New Mexican individuals and families out of the new home market. It is also becoming apparent, seven months after the commission voted its approval, the added costs associated with these new building standards are just now being realized.
The list of champions for these expensive new codes is a who’s who of environmental activists, and they have no understanding of the economics of new home construction.
Requiring considerably higher insulation values and other construction modifications, such as the mandate of installing infrastructure to accommodate future additions of electric vehicle charging stations, may sound like a good idea. But the reality is these new code requirements will likely increase a new home’s price by 10% to 20%.
In other words, a new home that, on average, now costs $350,000 will suddenly cost as much as $420,000. A decision that creates such a large increase in home prices, especially at a time when there is growing recognition that New Mexico has a lack of affordable housing, can only be described as “penny wise and pound foolish.”
While these new building codes became fully effective on July 30, we believe the Construction Industries Commission has an obligation to the construction industry and home buyers to take a second look at the negative impact these new standards will cause across New Mexico.
In fact, in a letter we sent to the commission recently, we strongly urged the commission to undertake an immediate public review of these codes to ensure there is a better understanding among all industries and stakeholders as to the full impact these codes will have on builders, designers, and homeowners.
We also requested the commission initiate a comprehensive economic analysis of these new building standards to determine the financial burden these new codes will place on the future price of new homes, as well as how many New Mexico individuals and families will no longer be able to afford a new house.
The commission seems to have their own agenda amidst this affordability crisis. Their new building codes will negate every effort by the state Legislature to help keep New Mexico housing affordable.
The state Legislature provided $125 million to the New Mexico Finance Authority to encourage more affordable housing projects, and authorized another $50 million to the New Mexico housing trust fund to help assist home buyers to purchase new homes.
Yet, the commission’s action appears to be a direct assault on the American Dream of many New Mexico individuals and families who want to own a new home.
Not to mention, legislation to mandate these new building codes has been previously voted down in the Roundhouse, meaning this unilateral decision by the commission is a direct circumvention of the will of elected legislators.
We are hopeful the commission will react positively to the growing outcry about these new building codes, but if not, there is always the possibility of going to court and questioning whether government has the authority to take actions that make the American Dream of new home ownership a thing of the past.
Luis Terrazas represents District 39 in the New Mexico House of Representatives. James Townsend represents District 54 in the House.
Read the original article at the Albuquerque Journal here


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