The Hidden Costs of New Mexico’s New Building Codes: A Threat to Affordable Housing

As New Mexico faces a growing housing affordability crisis, recent actions by the Construction Industries Commission threaten to exacerbate the problem. Adopting new building codes, which mandate higher insulation standards and require infrastructure for future electric vehicle (EV) charging stations in new homes, may sound like a step forward for energy efficiency and sustainability. However, the reality is far more complex and concerning, particularly for families already struggling to afford a home.

Implementing these codes will likely increase the cost of new home construction by 10% to 20%. For the average New Mexican, this translates to an additional $70,000 on a $350,000 home—a substantial increase that could push homeownership out of reach for many. While the intention behind these codes may be to promote energy conservation and prepare for a future with more electric vehicles, the unintended consequence is that they will make it even harder for New Mexicans to achieve the American Dream of owning a home.

The timing of these new regulations couldn’t be worse. New Mexico is already grappling with a significant shortage of affordable housing. The state legislature has taken steps to address this issue, including allocating $125 million to the New Mexico Finance Authority to encourage affordable housing projects and an additional $50 million to the New Mexico housing trust fund. These efforts are commendable and necessary, yet the new building codes threaten to undermine this progress by adding to the cost of new homes.

Moreover, these regulations appear to have been adopted with minimal public input or consideration of their economic impact. The Construction Industries Commission is responsible for ensuring that any new standards do not disproportionately harm New Mexico’s working families. Unfortunately, the hasty implementation of these codes suggests that the commission may prioritize an environmental agenda over the pressing need for affordable housing.

We must reassess the impact of these new building codes before they do irreparable harm to the housing market in New Mexico. A comprehensive economic analysis is needed to determine the actual cost of these regulations and understand how many families will be priced out of homeownership. Additionally, there should be a transparent and inclusive public review process involving all stakeholders, including builders, developers, and homebuyers, to ensure that these codes do not burden those who can least afford them.

In the quest to promote sustainability and energy efficiency, we must not lose sight of the immediate needs of New Mexicans. Ensuring that affordable housing remains a top priority, especially in a state where the cost of living continues to rise. The new building codes may be well-intentioned, but without considering their economic impact, they risk becoming a barrier to homeownership for many.

The Construction Industries Commission should reconsider these regulations in light of their potential consequences. If not, the very efforts designed to make our state more sustainable could make it less accessible for the people who call New Mexico home.