new york incremental cost

Month Mortgage Increase Monthly Energy Savings Cuuv Cs/Bf 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 $37.76 8 $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 CODE FOR NEW HOMES IN NEW YORK One o the major barriers to energy code adoption across the country is the concern that new codes will add to the purchase price and potential buyers will not be able to aord the homes they want. In New Y ork, upgrading homes to the 2009 International Energy Conservation Code will actually reduce out-o-pocket expenses or homeowners – paying o their initial investment in a matter o months. For the average new home, BCAP estimates the costs o the new code will add a total o $836 in construction costs—an increase o o nly 0.3%. When this amount is rolled into the average mortgage, 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 oset, however, by monthly energy savings o $21.58, helping homebuyers pay o their initial investment in only ten months. Ater breaking even in month ten, the home will return buyers a prot o $18 per month—or a total return o $214 every year. This return on investment is graphed below and presented as a balance sheet at right. Cumulative Beneft Monthly Benet: +$18 Prot ater Year 1: +$52 Energy Code Payback for New York Single Family Homes Monthly Mortgage Increase: $4 Monthly Energy Savings: $22 Down Payment Increase: $167 -$50 0 1 7 2 8 9 3 4 10 11 12 5 6 $50 $100 -$100 -$150 -$200 Month This model assumes an average sale price of $267,451 for a 2,400 square foot home. The mortgage is conservavely set at 30 years, with 20% down and the current average naonwide interest rate of 5.05%. With a lower down payment—such as 10% down—consumers will break even on their investment even sooner. Break Even $ 1 8 p r o f t v e r y o n t h

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8/7/2019 New York Incremental Cost

http://slidepdf.com/reader/full/new-york-incremental-cost 1/2

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

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

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