Homebuilders, Rejoice (At Least For Now)! Michigan Pauses Implementation Of New Residential Construction Codes Pending Results of Lawsuits

Homebuilders (both companies building houses and people trying to build the homes of their dreams) will immediately benefit from terms of a July 7 agreement staying the implementation of new building codes that (according to trade associations opposing the new standards) could have significantly raised the cost of new home construction.

By way of background, on May 1, 2025, construction code updates to the Residential Building Code (Part 5) and to the Michigan Uniform Energy Code (Part 10) were filed with the Michigan Secretary of State, set to take effect 120 days later (on August 29, 2025). These proposed updates implement the 2021 edition of the International Residential Code (“IRC”) and the 2021 edition of the International Energy Conservation Code (“IECC”), which aim to increase energy efficiency in homes. However, the codes have faced heavy criticism from builders who are projecting a $16,000 increase in the cost to build a typical 2,000 square foot home, potentially pricing more Michiganders out of home ownership.

The International Code Council (“ICC”) consults a wide range of experts to draft model codes, which are widely adopted across the nation and overseas. While Michigan is seeking to implement the 2021 editions of the IRC and IECC, the ICC has since published more up-to-date and efficient 2024 editions for the IRC and IECC. The 2024 IECC is projected to result in an energy cost savings of 6.6% compared to the 2021 IECC while offering more flexibility for builders through a wider range of compliance options, minimizing build cost increases for new homes.

In June, the Home Builders Association of Michigan and Michigan Manufactured Housing Association filed lawsuits in the Michigan Court of Claims (part of Michigan’s Court of Appeals which handles claims against the State) against the Michigan Department of Licensing and Regulatory Affairs (“LARA”) seeking injunctive relief stopping Michigan from applying or implementing the code changes.

The complaints allege that the construction code changes:

• Fail to comply with the “cost-effective” analysis of construction code changes under Michigan law requiring the economic cost of improvements to be recovered over a 7-year period; and
• Fail to satisfy the Administrative Procedures Act (MCL 15.201 et seq.)

On July 7, Judge James Robert Redford signed a stipulated order stating that Michigan has agreed to delay implementation of the Residential Building Code and Michigan Uniform Energy Code updates until the conclusion of the lawsuits.

The stay of enforcement of the new Codes is good for builders and people seeking to build new homes right now, as it stalls implementation of the costly changes required by the new standards. It is also good for the public in general to avoid uncertainty that might arise were the State to implement the new codes, only to have to rescind them depending on the lawsuit’s outcome.

While we continue to track the ongoing legal developments, the Rhoades McKee Construction Law Team is here to help builders navigate compliance and stay up to date with the new changes.