8/7/2019 New York Incremental Cost

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MonthMortgageIncrease

MonthlyEnergy Savings

Cu u vC s /B f

1 $167.16 $21.58 $145.58

2 $3.61 $21.58 $127.61

3 $3.61 $21.58 $109.64

4 $3.61 $21.58 $91.67

5 $3.61 $21.58 $73.70

6 $3.61 $21.58 $55.73

7 $3.61 $21.58 $37.768 $3.61 $21.58 $19.79

9 $3.61 $21.58 $1.82

10 $3.61 $21.58 $16.15

11 $3.61 $21.58 $34.12

12 $3.61 $21.58 $52.09

13 $3.61 $21.58 $70.06

14 $3.61 $21.58 $88.03

15 $3.61 $21.58 $106.00

16 $3.61 $21.58 $123.97

17 $3.61 $21.58 $141.94

18 $3.61 $21.58 $159.91

2009 INTERNATIONAL ENERGY CONSERVATION C

FOR NEW HOMES IN

NEW YORK

One o the major barriers to energy code adoption across the country is the concern that newcodes will add to the purchase price and potential buyers will not be able to a ord the homesthey want. In New York, upgrading homes to the 2009 International Energy ConservationCode will actually reduce out-o -pocket expenses or homeowners – paying o their initialinvestment in a matter o months.

For the average new home, BCAP estimates the costs o the new code will add a total o $836in construction costs—an increase o only 0.3%. When this amount is rolled into the averagemortgage, real costs to homebuyers will mean a down payment increase o $129.22, and$2.80 extra on monthly mortgage bills.

These added mortgage costs will be o set, however, by monthly energy savings o $21.58,helping homebuyers pay o their initial investment in only ten months. A ter breaking evenin month ten, the home will return buyers a pro t o $18 per month— or a total return o $214 every year. This return on investment is graphed below and presented as a balancesheet at right.

Cumulative BeneftMonthly Bene t: +$18

Pro t a ter Year 1:+$52

Energy Code Payback for New York Single Family Homes

Monthly MortgageIncrease: $4

Monthly EnergySavings: $22

Down PaymentIncrease: $167

-$50

0

1 72 8 93 4 10 11 125 6

$50

$100

-$100

-$150

-$200Month

This model assumes an average sale price of $267,451 for a2,400 square foot home. The mortgage is conserva vely set at30 years, with 20% down and the current average na onwideinterest rate of 5.05%. With a lower down payment—such as10% down—consumers will break even on their investmenteven sooner.

Break Even

$ 1 8 pr of t ever y mont h

8/7/2019 New York Incremental Cost

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Homes are the biggest investment we make—and everyone deserves a home that meets national minimum energy efciency standards. While it’s truethat homeowners can always improve the efciency o their homes, it is ar more cost-e ective to upgrade building components during construction,putting in better windows or swapping out one grade o insulation or a better one. Here’s what buyers get with the 2009 IECC:

For the ull Incremental Cost Analysis study, please visit bcap-ocean.org

2009 INTERNATIONAL ENERGY CONSERVATION C

L gh g:$50

Payback Period

10 months

2-y r Pr f

$267.73

A u E rgy R duc

13-14%

5-y r Pr f

$914.65

2

5Climate Zone 4u- actor: .4 a .35 window

Climate Zone 6 insulation

r-value: 19 a 20 frame wall

Climate Zone 5 insulation

r-value: 19 a 20 frame wall

Duct Sealing andT s g: $350ProgrammableTh r s : $50

Window UpgradesClimate Zone 4: $216

I su Upgr d sClimate Zone 5: $434Climate Zone 6: $421