For many people, the dream of homeownership is out of reach. Generations of Americans have built not only their financial security, but also their lives and families, around their homes. But today, costly red tape is driving up home prices, making homeownership far too difficult for hardworking families.
The high cost of housing has forced many people to delay buying a home until much later in life. The median sale price of a new home now exceeds $400,000. The average age of first-time homebuyers has climbed from 29 years old in the 1980s to 40 years old in 2024. The median age for all homebuyers has increased to 59 years old.
Many people now have to wait until they are several decades into their careers before they can buy a home and finally start to raise a family. A Coldwell Banker report found that 71% of Americans are delaying major life events such as getting married and having children until they can afford to buy a home. Another survey found that 1 in 6 would-be homebuyers have given up on trying to buy a home during the past six years because their desired home was too expensive.
Simply put, homes are too expensive, and young people are suffering.
While there are many factors, such as high interest rates, restrictive zoning laws, and a housing supply shortage, that drive up the cost of homes, burdensome government regulations have made the problem even worse.
During the Biden administration, the federal government increased regulations on new homes by imposing costly green energy mandates. Under the auspices of fighting climate change, the Biden administration implemented requirements for new homes to install electric stoves and water heaters, effectively banning natural gas alternatives.
First, these mandates drive up the cost of new homes. In 2022, President Joe Biden signed the Inflation Reduction Act, which devoted more than $5.7 billion in taxpayer money to subsidize pointless green energy standards.
Electric appliances are often more costly in the long run, as electricity is more expensive than gas. Federal government mandates to install electric appliances result in homeowners paying higher utility bills to meet their everyday needs.
Some homebuilders estimate that these IRA mandates alone have increased the cost of new homes by up to $31,000.
Earlier this year, Buddy Hughes, the chairman of the National Association of Home Builders, testified before Congress that regulatory costs, such as building and zoning codes, make up nearly 25% of the cost of building single-family homes and 40% of the cost of apartment developments. Far from a minor issue, these regulations are a major contributor to rising housing costs.
Second, these green energy rules limit consumer choice. People no longer have the freedom to decide how to cook their food or heat their homes. For many homeowners, natural gas stoves are the preferred method of cooking in their homes. The federal government should not dictate what people can put into their homes.
It’s clear that overregulation from the federal government is making the dream of homeownership unattainable for hardworking people.
That’s why I have introduced the Homeowner Energy Freedom Act, which repeals costly green energy regulations on homes. Rolling back unnecessary provisions of the Inflation Reduction Act will restore people’s right to make decisions about their own homes and help lower the cost of new homes.
Alongside efforts from the Trump administration to reduce the cost of living and increase economic growth, cutting unnecessary regulations will help more people achieve homeownership.
The solution to help people afford a home is not for the federal government to get more involved in the housing market. Rather, the solution is to get the federal government out of the housing market.
TRUMP PRESSED THE 50-YEAR MORTGAGE TO EXPAND AFFORDABILITY. IS HE MISSING THE POINT?
Every time the federal government gets involved in the free market, costs go up, and hardworking people pay the price. If we want to help improve home affordability, we must repeal costly green energy regulations.
As President Ronald Reagan once said, “Part of the American dream has always included safe and affordable housing.” That was true then, and it is true now. Burdensome regulations are driving up housing costs and putting homeownership out of reach for people. It’s time to repeal the red tape and restore the American dream of homeownership.
Craig Goldman represents Texas’s 12th Congressional District in the House of Representatives.