Colorado’s newly adopted Model Low Energy and Carbon Code locks in costly electrical requirements for every new home, mandating wiring for electric-vehicle chargers, heat pumps, induction stoves, and electric water heaters—regardless of whether buyers intend to use them. These provisions, designed as efficiency measures, inflate housing prices by adding tens of thousands of dollars to construction costs. Builders absorb none of these expenses; they are passed directly to mortgage applicants.
The state’s 2022 Building Greenhouse Gas Emissions law required “electric-ready” and “solar-ready” features starting in 2023, and the new code tightens those mandates further. With fewer than 2% of U.S. vehicles fully electric and plug-in hybrids accounting for just 7% of new sales in early 2026, builders must oversize electrical systems for future technologies few buyers will adopt.
New York’s All-Electric Buildings Act, which bans fossil-fuel hookups in most new residential construction, adds $12,000 to $23,000 per unit through electrification requirements. While state regulators claim long-term savings, builders and realtors argue upfront costs deter affordability—especially when buyers lack incentives to adopt these features.
California’s median home value exceeds $775,000, more than double the national average, due to decades of restrictive zoning, approval delays, and energy code mandates that push buildings toward full electrification. Supporters claim reduced emissions and lower installation costs, but for most households, the immediate financial burden outweighs potential savings.
Mandates erase critical buyer choices: first-time buyers may prefer smaller electrical panels; retirees might not own electric vehicles; rural homeowners often rely on propane or natural gas for affordability. By requiring features buyers neither choose nor need, these regulations make housing unattainable without sacrificing affordability—a reality Colorado, New York, and California now face.
Paul Mueller, Ph.D., is a senior research fellow at the American Institute for Economic Research.
