Over the years, the United States has, like the rest of the world imposed stricter and tighter building codes. The United States has no national building code. Instead, each state or city makes its own rules. I’ve found that the areas or states with the strictest codes for building also have the most expensive prices. It is because it becomes harder to build homes or repair them, that they become more expensive. People stop building and then when they do, they raise the prices to make it work. What are the areas with the most strict building codes in America?
How have building codes changed over the years?
In the early 1900s, there were no real building codes. Anyone could build wherever they wished, with only minor restrictions. Over time, government officials decided that commercial and residential properties and houses were not safe and standards needed to be set for both construction and repairs. The federal government allows local governments to decide whether they want stricter codes in some cities, counties, or states.
By comparing houses from different periods, you can observe how the building codes have evolved over time. Some houses built 100 years ago were of amazing craftsmanship. We often hear, “They don’t build them the way they used to”. Many houses were built in the style of shacks and have fallen to ruin. As a property investor, I’ve bought many of these shacks and was surprised that they lasted so long.
Looking at different houses will show you the improvements made. Some houses that are over 100 years old might not have windows in the basement, where egress window are now required. In 50 years, houses had little insulation. Now they are required to be insulated. In the past, you could put up to three layers of shingles onto a roof. Now most places only allow for one. Some areas near the coast require hurricane glass or reinforced structures.
While stricter building codes are safer and more efficient, they can also increase the cost of houses.
What areas are exempt from building codes?
There are still areas in the US where there is no building code! There are no building codes in these states:
- Alabama
- Arizona
- Colorado
- Illinois
- Mississippi
- Missouri
- North Dakota
- Tennessee
- Texas
- West Virginia
- Wyoming
Although these states don’t have standard building codes for all of their counties and cities, they usually do. Denver and Boulder, where I live, have some of America’s strictest building codes. There is no state-wide building code in Colorado. Louisville, where in 2021 the Marshall Fires took place, requires sprinkler systems for all new homes though they removed that requirement for the houses destroyed by the fire!
There are counties that do not have building codes.
- Delta County, Colorado
- Montezuma County in Colorado
- Arcosanti Urban Laboratory, Arizona
- Brewster County is located in Texas
- Wonder Valley in California
- Marfa County, Texas
- Terlingua Texas
- Miller County Missouri
You might be able build whatever you like in these areas as long as it is not in a city that has stricter codes. But remember, codes are always changing!
Which areas have the strictest construction codes?
It is interesting, but not surprising, that areas with stricter building codes tends to have higher prices.
Why does building to stricter codes cost more?
The most expensive places around the world, and the US in particular, tend to have stricter building codes. The government is responsible for driving up the price of real estate, not investors as some people claim. It is true that the harder it is for people to repair and build houses, the higher their price will be. The more difficult it is to construct houses, the less houses will be constructed. This will cause a housing market imbalance and drive prices even higher. These areas will also have fewer investors because they are difficult to build in, expensive to maintain, and it’s difficult to do business there.
The conclusion of the article is:
Building codes make homes safer and more energy-efficient, but they also increase the price of houses at a moment when housing is becoming more and more unaffordable. You can also expect higher prices if you push for stricter building code and energy-efficient houses. Although the US housing market may seem out of reach for some people due to the high interest rates remember that the US is actually the 5th most affordable in the world.
