HUD and USDA Collaborates to Implements Updated Energy Efficiency Standards for New Homes

Marsha Jacobs
Published Jul 24, 2025


The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) have collaborated to update the Minimum Energy Standards for newly constructed homes. These updated standards promise lower monthly costs, enhanced comfort, and a healthier planet for homeowners.

By implementing cost-effective solutions such as efficient windows, better insulation, and modern heating and cooling systems, new single and multifamily homeowners can look forward to substantial savings on energy bills. This move not only puts money back into homeowners' pockets but also reduces energy use, reducing our carbon footprint.

The updated standards were prompted by The Energy Independence and Security Act of 2007, which ensures that homes remain affordable and accessible. For single-family homes financed through HUD, the transition to energy efficiency is swift and rewarding, with annual savings of over $950 translating to thousands of dollars over the lifetime of their home. 

Multifamily units are also set to save approximately $224 per apartment annually, a boon for renters seeking affordable living options.

These updated standards are especially important for low- and moderate-income families who typically spend more on energy bills. By reducing these costs, families can allocate more towards their needs and aspirations.

Moreover, as we face the challenges of climate change with increasingly extreme weather conditions, these updated standards ensure homes are not just energy-efficient but resilient, safeguarding against the elements and contributing to the well-being of residents.

The initiative is estimated to reduce 6.35 million metric tons in carbon emissions over 30 years and an annual societal cost savings of $13.9 million. This initiative marks a significant step towards sustainable living, applicable to new construction across various HUD and USDA financed programs, promising a greener, more resilient future for American homeowners and renters.

HUD's mission continues to foster strong, sustainable, inclusive communities, and quality affordable homes for everyone. Stay tuned to HUD's website and social media channels for more updates on how we're building better homes for a better tomorrow.

If you're interested in reading more about housing assistance, check out these articles:

Related articles

Section 8 Waiting Lists and Public Housing Opening in October 2025...

Are you looking for affordable housing? New openings for Section 8 and public housing waiting lists are coming up in Florida and New Jersey in October 2025. Here’s what you need to know about the...

Understanding New York’s STAR Tax Relief Program...

New York State has a special program to help people save money on property taxes, especially for school costs. This program is called the School Tax Relief (STAR) program. It was created to make living in New York mor...

Exploring & Understanding Mortgage Loan Modifications to Retain Your Home...

Financial problems like job loss, illness, or divorce can make it hard for homeowners to pay their mortgage. If you’re having trouble making your monthly payments, a mortgage loan modificatio...

How to Get Help If You're Struggling to Pay Your Water Bill...

Having safe water at home is important for staying healthy, cooking, and cleaning. But for many people, especially older adults with limited income, water bills can be hard to afford. In fact, about 20% of house...

Affordable Housing Opportunities And Waiting Lists Opening This September...

This September, several cities in Texas, North Carolina, Florida, and Indiana will open waiting lists for affordable housing programs. If you are looking for help paying for rent through the Sec...

Medicare and Housing Assistance: What You Need to Know...

Medicare is a government health insurance program mostly for people aged 65 and older. One common question is whether Medicare helps pay for housing costs. Here is what you need to know.   Does Medicare Pay fo...