News Summary
New York’s new law banning gas and propane usage in buildings is causing significant construction delays, exacerbating the state’s housing crisis. The ban, effective January 2024, affects developments like Four Mile Creek, which aims for 300 units but has only completed 40. Builders are concerned about the lack of electrical infrastructure to support the increased demand, potentially prolonging the housing shortage and driving up costs for consumers.
New York’s Gas Ban for New Builds Causes Construction Delays Amid Housing Crisis
A recent state law in New York prohibiting gas and propane usage in new buildings is leading to significant construction delays. This legislation has come at a critical time, as the state faces a considerable housing shortage. The ban is particularly affecting the Four Mile Creek development, which is located east of Rochester and plans to construct 300 residential units, including single-family homes and townhomes. However, to date, only 40 units have been completed.
The new mandate, which is set to take effect on January 1, 2024, prohibits the installation of natural gas and propane equipment in all new structures up to seven stories tall. This mandates that all appliances, including stoves, furnaces, water heaters, and dryers in these buildings, must function on electricity.
Builders in New York are expressing their concerns over the implications of this fossil fuel ban. They argue that utility companies currently lack the infrastructure capacity needed to accommodate the increased electrical demand that will result from these new constructions. Experts feel that this could lead to a slowdown in the very housing development that the state desperately needs.
Frustration is widespread, particularly among construction firms such as Gerber Homes. Many builders feel conflicted as natural gas remains readily available but is being sidelined due to the new law. The Rochester Home Builders’ Association is taking steps to raise awareness among the public about the potential fallout of the legislation.
This gas ban forms part of the All-Electric Buildings Act, which was enacted in 2023 and aims to cut reliance on fossil fuels. Nevertheless, the transition to an entirely electric system could put even more strain on the existing electric grid capacity, according to industry experts. The chair of the Rochester Home Builders’ Association has pointed out that the long-term implications of this shift could be significant, especially considering the potential for increased competition for electrical resources.
Alarming predictions have been made regarding future construction projects. Home builders are urging the state government to reconsider the timeline of this gas ban and delay its implementation until there have been necessary upgrades to the electrical grid. The economic development manager with Rochester Gas & Electric has noted that the utility companies’ ability to manage the increased demand will vary by location, further complicating the situation.
Utilities are looking to increase rates to fund upgrades to the electrical infrastructure, which is estimated to cost over $5 billion in RG&E’s territory alone. Many of the proposed projects aimed at enhancing electrical capacity could take between three to five years to complete, meaning that delays in housing projects may extend well into the future.
Despite the pressing housing crisis in New York, the gas ban appears to be a significant obstacle to achieving an increase in affordable housing availability. The Rochester housing market, in particular, is currently experiencing an acute shortage. Homes are being sold rapidly, while new inventory is alarmingly scarce. First-time and low-income homebuyers are facing an uphill battle due to rising competition and interest rates that now exceed 7.5%.
Governor Kathy Hochul’s office has responded to the apprehensions regarding rising construction costs by attributing them to tariffs imposed during the Trump Administration. This has further fueled calls for a political remedy to address construction and housing challenges in the state. Builders are quick to emphasize that the rising costs of new homes will eventually be passed on to consumers, as developers initially absorb these expenses through infrastructure investments.
The confluence of an urgent housing crisis and a new ban on gas and propane usage poses a complex dilemma for New York’s construction industry. As projects are stalled and the demand for housing continues to grow, the effects of the new law may have far-reaching implications for both builders and potential homebuyers alike.
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Additional Resources
- Spectrum Local News: Gas Ban in New York
- Wikipedia: Housing Crisis
- 13 WHAM: Affordable Modular Homes in Rochester
- Google Search: New York Housing Legislation
- Rochester First: Redevelopment of Former Tent City
- Google Scholar: Affordable Housing Crisis New York
- Post Bulletin: Lennar Acquires Rochester Land
- Encyclopedia Britannica: Housing Market
- 13 WHAM: Eco-Friendly Affordable Home by Greendoor Builders
- Google News: New York Real Estate
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
