Policy clash: how two housing policies blend to price out millions

"It goes with the insanity of today's U.S. housing affordability crisis that two rights can make a wrong. Two federal policies each designed to lower the lifetime operating cost of owning a home can instead combine to raise the barrier to entry so high that millions of households never get through the front door in the first place. The technical terms for these lose-lose-lose, vicious circle redtape riddles? You can't make this s*** up."

"The latest proof point came January 10, when the U.S. House of Representatives passed the Affordable HOMES Act (H.R. 5184) by a bipartisan vote of 263147. The bill repeals a 2022 Department of Energy rule that would have imposed site-built energy-efficiency standards on manufactured homes, restoring sole regulatory authority to the Department of Housing and Urban Development under the HUD Code. On its face, this looks like a narrow manufactured-housing fix. It isn't."

"To understand why first costs and operating costs are linked, start with the National Association of Home Builders' 2025 Housing Affordability Pyramid. According to NAHB's priced-out analysis, 94 million U.S. households about 70% cannot afford a $400,000 home. The estimated median price of a new home in 2025 is closer to $460,000. At the bottom of the pyramid are 52.9 million households that can afford homes priced under $200,000. Yet only about 22 million owner-occupied homes exist in that price range."

Two federal policies intended to lower lifetime operating costs of homeownership can combine to increase upfront purchase costs and block potential buyers. The House passed the Affordable HOMES Act (H.R. 5184) to repeal a 2022 Department of Energy rule that would have imposed site-built energy-efficiency standards on manufactured homes, restoring regulatory authority to HUD under the HUD Code. Regulatory overlap and poor sequencing can add substantial compliance and production costs. NAHB analysis shows about 94 million households cannot afford a $400,000 home, with a median new-home price near $460,000 in 2025. Fifty-two point nine million households can afford homes under $200,000, yet only roughly 22 million such owner-occupied homes exist. Small increases in upfront price can erase entire cohorts of potential buyers.

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