NYSBA: Rising energy mandates threaten housing affordability for New York families

Buffalo Niagara Builders Association press release

The Buffalo Niagara Builders Association (BNBA) today warned that the state’s current energy policies under the Climate Leadership and Community Protection Act (CLCPA) and related electrification mandates risk significantly increasing the cost of building and owning a home, further worsening New York’s housing affordability crisis.

Builders, contractors, and working families across New York are already grappling with one of the nation's most challenging housing markets. As the state pursues an aggressive energy transition, new mandates under the CLCPA threaten to drive construction costs even higher and push homeownership further out of reach for many families.

A recent internal analysis by the New York State Energy Research and Development Authority has warned of potentially significant increases in fuel and energy costs if current mandates are implemented without meaningful adjustments. Those projections should be taken seriously.

“In our experience in the housing industry, when government estimates costs, the real-world impact is often higher, not lower,” the association said.

BNBA estimates that certain electrification mandates and energy requirements could add $25,000 or more to the cost of building a new home, a burden that could prevent many first-time buyers from qualifying for a mortgage.

BNBA also emphasized that energy policy must balance environmental goals with the realities facing working families and the housing sector.

“Energy policy should prioritize reliability, affordability, and consumer choice,” the association said. “New Yorkers should have access to a range of energy options that allow homeowners, builders and businesses to make practical decisions based on cost and performance. Eliminating viable energy sources before alternatives are fully reliable and affordable simply shifts the burden onto ratepayers and homebuyers.”

The association acknowledged recent signals from Gov. Kathy Hochul indicating a willingness to reassess aspects of the state’s energy strategy, and urged the administration to take NYSERDA's warnings seriously.

“We stand ready to work with the governor and policymakers on solutions that support responsible environmental stewardship while recognizing the economic realities facing New York families,” it said.

Signed,

Phil Nanula, president

Buffalo Niagara Builders Association

Joe Benedict, executive officer

Buffalo Niagara Builders Association

The Buffalo Niagara Builders Association is a nonprofit organization whose mission is to be the voice of builders, developers and associated industries. The association advocates for choice in housing, economic growth, and quality-of-life issues in the community. Its membership includes small-, medium-, and large-volume home builders, commercial builders, developers and remodelers. Associate/institutional members are professionals and tradespeople who work with and support the industry, including subcontractors, architects, engineers, building materials suppliers, Realtors, bankers, attorneys and others.