Building Codes Save Money and Lives

In the race to make housing more affordable, building codes are not an obstacle. They are part of the solution.

For more than a century, codes have made homes safer, more durable, and less costly to maintain. A debate unfolding in Washington will determine whether that record will be strengthened or undone in the name of short-term and short-sighted savings.

Building codes were developed in the U.S. in response to catastrophes such as the Great Chicago Fire of 1871 and the San Francisco earthquake of 1906. To save lives and property, experts created standards to improve structural integrity, fire safety, electrical systems and, later, to improve energy performance and resilience against extreme weather.

These standards are developed in public by builders, engineers, fire officials, and local governments, and are adopted voluntarily, tailored locally, and updated regularly to reflect advances in science, technology, and experience.

Yet some powerful interests want to scale back building codes, particularly those related to energy use in new homes. That approach overlooks a large body of evidence, much of it from the federal government itself.

Research consistently shows that strong codes deliver meaningful savings. The National Institute of Building Sciences and the Federal Emergency Management Agency have found that hazard-resistant building codes return multiple dollars in benefits for every dollar invested. The Department of Energy’s building energy codes program previously estimated – during both Republican and Democratic administrations – that codes generate billions of dollars in savings for consumers annually. An Energy Department webpage that was recently removed showed that the adoption of the latest energy code will save American homes and businesses $182 billion between 2010 and 2040.

The savings appear in lower utility bills, reduced repair costs, and homes that hold their value over time. A more efficient property reduces energy costs over the average time people own their homes.

The evidence does not support critics’ claim that building codes drive up housing prices. A new, multi-year, multi-state study by University of Alabama demonstrated that adopting newer editions of the International Residential Code® did not increase housing prices and, in some cases, lowered them.

Instead, codes enhance what that price buys: a structure that performs better, lasts longer, and protects occupants from avoidable risks.

Safety and affordability do not compete. A home that fails in a fire, flood or storm is not affordable to anyone. When disasters strike, communities with stronger building standards experience less damage and recover faster. After California’s 2018 Camp Fire, homes built to modern codes were far more likely to withstand the flames.

Resilience carries financial benefits beyond disaster survival. Homes built to higher standards often qualify for lower insurance premiums, especially to cover flood damage. Programs studied by the Insurance Institute for Business and Home Safety have shown that strengthening construction can significantly reduce losses and lower costs for homeowners over time.

Codes also accelerate cost-saving innovations. Modern frameworks clear the way for modular construction, prefabrication, and the use of new materials. Many jurisdictions now use streamlined, digital permitting systems, such as those outlined by the International Code Council’s off-site construction resources, which can speed approvals and reduce administrative costs. Codes provide the standardization that makes scale and efficiency possible.

None of this diminishes the urgency of the housing affordability crisis. Millions of Americans struggle with high rents and limited housing supply. But the most effective remedies lie in revising restrictive zoning laws, increasing density, expanding financing tools, and investing in the workforce needed to build more homes. These approaches address supply directly without compromising safety or long-term affordability.

Rolling back building codes would shift risk from developers to homeowners, especially those least able to absorb it. Families would face higher utility bills, increased maintenance costs, and greater exposure to disasters. The apparent savings at construction would be paid out by the homeowner many times over in the years that follow.

A home is the largest investment most families will ever make. It also is, fundamentally, a promise of safety. Building codes are the mechanism by which that promise is kept.

Policymakers seeking to make housing more affordable should be careful not to undermine one of the few tools that already reduces costs over time while protecting lives. Building codes save money and lives.

John Belcik is CEO of the International Code Council.