News Summary

Industry groups representing Michigan homebuilders have filed lawsuits against the state to block new energy efficiency building codes set to take effect in August 2025. Builders argue the increased costs, estimated to add $16,000 to typical home construction, will worsen the housing crisis. Proponents of the regulations contend that long-term energy savings justify the initial expense, highlighting the ongoing debate over affordability versus energy efficiency in home construction. The outcome of this legal battle could significantly impact the future of residential building practices in Michigan.

Lansing, Michigan – Industry groups representing homebuilders are taking legal action against the state of Michigan to block the implementation of new residential building codes aimed at enhancing energy efficiency. The proposed codes are scheduled to take effect on August 29, 2025, after experiencing multiple delays. Homebuilders assert that the increased upfront costs associated with these new regulations are prohibitively high, potentially exacerbating the state’s ongoing housing crisis.

The lawsuits were filed against the Michigan Department of Licensing and Regulatory Affairs (LARA) and its Director, Marlon Brown, on June 20 and June 23, 2025. Builders claim that Michigan is grappling with a shortage of affordable housing, especially for first-time homebuyers who are eager to enter the real estate market.

According to a report commissioned by the builders, the new codes would increase the cost of constructing a typical 2,000-square-foot home by approximately $16,000. In contrast, proponents of the new regulations, including environmental advocacy groups, argue that the long-term savings on energy costs and the reduction in carbon emissions justify the initial expense.

This legal challenge has the potential to stall the implementation of the new energy codes, which builders see as necessary for modernizing construction practices in response to current environmental and economic demands. The Home Builders Association of Michigan and the Michigan Manufactured Housing Association are at the forefront of this legal challenge against LARA.

The lawsuits allege that state officials overstepped their authority in updating residential building codes and did not follow the necessary procedural steps required by Michigan law. The legal action includes a request for a preliminary injunction to halt the implementation while the case is being adjudicated.

Homebuilders argue that the new codes do not align with the cost-effectiveness mandate established by Michigan law, which requires any new codes to feature a “simple payback” period of no more than seven years. A federal study estimates that the payback period for the upcoming codes could range between 10 to 12 years, raising concerns about their financial viability for builders and homeowners alike.

Supporters of the new codes counter that focusing solely on initial costs overlooks the potential for ongoing savings that homeowners could enjoy through enhanced energy-efficient designs. Advocates assert that homeowners could experience a positive cash flow within the first two to six years after adopting the new codes, as savings on energy expenses would help offset the increased mortgage payments associated with higher construction costs.

The revised codes are aimed at regulating various elements of new residential properties, including building materials like insulation, windows, and HVAC systems. The ongoing legal conflict highlights a broader concern within the construction industry, where builders feel that stringent new requirements limit flexibility in design and construction methodologies.

Critics of the current regulatory landscape are voicing their concerns on how continued delays in updating building codes contribute to safety issues and inefficiencies within the industry. The proposed changes reflect an industry-wide need to keep pace with advancements in technology and energy efficiency standards.

In response to the lawsuits, LARA intends to pursue legal options to defend the validity of the code updates. The agency points out that previous delays in legal disputes have often resulted in outdated building standards remaining in effect for extended periods, ultimately hindering progress in energy efficiency and safety improvements.

The outcome of this legal battle could have broad implications for the future of residential construction in Michigan, affecting homebuilders, potential homeowners, and the state’s approach to energy efficiency standards.