Lowering Home Costs Should Not Abandon National Electrical Safety Requirements
A recent story in EC&M attempted to draw a connection between the home affordability crisis and improvements to the National Electrical Code (NEC) that help prevent electrical shocking, electrocution, and electrical fires. The article highlights efforts by various industry groups to strip out essential consumer protections from the NEC, namely AFCI, GFCI, and surge protection.
Housing affordability is a concern nationwide, but to be clear, the path to making new homes more affordable should not come at the expense of eliminating proven electrical safety requirements that protect public health and safety.
A recent, in-depth story from YahooFinance! specifically addressed the root causes of the U.S. housing affordability situation, pointing to ongoing supply chain problems and rapidly rising wages for construction workers leading to higher homebuilding costs.
It also cited additional impacts on those costs including a struggling economy; current homeowners holding onto their properties purchased when interest rates were low; and potential homebuyers shying away from new construction due to less than desirable and much higher mortgage rates. Experts interviewed for the story also concluded that “the main reason home prices are so high in the U.S. is the relatively low inventory.” It is worth noting that nowhere in the story does it mention electrical safety requirements as being part of the problem.
Professional, licensed and certified electrical contractors and electricians know exactly how important the NEC requirements are and support them. Safety is always a number one priority with these trained men and women who work tirelessly in the field to add safety, value and protection for individuals and families long after they have left the job site. Their work and the NEC standards they adhere to should be respected for the incredible value they bring to someone building a new home. Protecting contractors, installers, and homebuilders during the time of construction must be included in the cost-benefit analysis of adding additional protections.
The electrical industry understands that these requirements are there for good reason: they provide for the safe installation of electrical wiring and equipment and above all protect the consumer. Published by the National Fire Protection Association (NFPA), the NEC is revised every three years to make sure it is up to date, representing the latest in safety methods and technology. It is further incorporated into everything the electrical community does when building and renovating homes and commercial buildings.
The average cost to build a new home in 2025, depending on where you live, ranges from $110,000 to $550,000, per Houzeo.com. The average cost to protect a 2,000 sq ft home from electrical shocking/electrocution (GFCIs), electrical fires (AFCIs), and electrical surging (SPDs) combined is between $1,000 to $1,500. That’s less than .75% of the total cost of a $200,000 home and, spread over a 30-year mortgage, about $4.15 per month to fully protect the occupants.
Some stakeholders contend it would be better to just get rid of, or scale back, these NEC safety requirements rather than protect a family for decades. That type of thinking does a disservice to the public that believes they are getting homes built to the highest safety standards when, in reality, they are not. It does not make common sense, and it sets a precedent that should concern everyone if homes start being built without national safety standards that comply with the most updated NEC. This is especially concerning as insurance rates skyrocket across the nation. Nationally, insurance premiums rose 11.3% in 2023 and shot up 33.8% from 2018 to 2023, according to S&P Global Market Intelligence. The reduction of or removal of NEC safety requirements can only serve to increase insurance premiums, further impacting home affordability.
As the International Brotherhood of Electrical Workers stated in EC&M’s story, safety and affordability can co-exist in this case.
There needs to be an open and honest discussion between the electrical and construction industries to reinforce why NEC safety requirements matter and how to address other factors that are actually impacting cost. All interested parties can come together to ensure homes are safe, affordable, and resilient.
