Michigan seeks to adopt energy-efficient 2024 building codes amid rising construction costs

The Michigan Legislature convened on April 17, 2025, to discuss pressing issues surrounding economic competitiveness, particularly focusing on the housing crisis and construction costs. Key discussions highlighted the challenges posed by rising material costs and regulatory changes affecting the housing market.

During the meeting, representatives emphasized the need for a holistic approach to address the housing crisis. Concerns were raised about the significant increases in construction materials, such as air conditioners and lumber, which have surged due to various factors, including new EPA regulations. These rising costs are seen as a barrier to affordable housing, with experts noting that once prices increase, they rarely decrease.

A significant point of discussion was the impact of regulatory reforms on housing affordability. It was noted that states that have implemented such reforms have not seen a corresponding increase in affordable housing. Participants argued that any savings from regulatory changes must be mandated to be passed on to housing projects to have a meaningful impact on affordability.

The meeting also addressed the adoption of new building codes, specifically the 2024 codes, which are expected to be more energy-efficient and flexible compared to the 2021 codes. Stakeholders expressed a desire to bypass the 2021 codes in favor of the more advanced 2024 codes, which would allow builders greater flexibility in achieving energy efficiency.

Additionally, the impact of tariffs on construction materials was discussed, with estimates suggesting that tariffs could increase the cost of building a home by $7,500 to $10,000 due to higher lumber prices. The discussion underscored the interconnectedness of various factors affecting the housing market, including international trade and local regulations.

In conclusion, the meeting highlighted the urgent need for coordinated efforts to tackle the housing crisis in Michigan. As rising costs and regulatory challenges persist, lawmakers are urged to consider comprehensive solutions that balance safety, affordability, and energy efficiency in the housing sector.