On Thursday, Feb. 27, at the International Builders’ Show (IBS) in Las Vegas, builder-developer Buddy Hughes was formally elected as the 2025 Chairman of the Board of Directors at the National Association of Home Builders (NAHB).
Based in Lexington, N.C., with a footprint that extends to South Carolina and Virginia, Hughes is a third-generation builder with more than 45 years of experience in the industry. His company, Hughes Construction, is primarily a general contracting business specializing in home building and light commercial construction.
For decades, Hughes has been an active participant in the NAHB leadership structure at the local, state, and national levels. He currently serves as a life delegate of the NAHB Leadership Council and has been a member of the NAHB Board of Directors for more than 20 years.
He’s also an innovator, having integrated insulated concrete forms (ICFs) for his crawlspace and full-height basement walls beginning in the mid-1990s after seeing the technology exhibited at IBS. He has since trained hundreds of builders to install ICF walls for all types of construction and continues to serve as a product specialist and consultant to the residential and commercial construction industries.
Custom Builder: What's your main objective as the 2025 chairman?
Buddy Hughes: Addressing excessive codes and regulations so we can build more homes is a key priority for me this year. Everybody wants more houses, but the regulations have continued to pile up and restrict our ability to build.
We're being urged to build more energy-efficient and resilient housing and also to make homes more affordable.
It's a challenging task, so we're going to have to start at the top and try to get as much help as possible. And we feel very good that this new administration has committed to reducing regulatory burdens.
CB: That’s a complicated issue. Where do you start?
BH: My first priority is to remind the federal government that it should not be in the [building or energy] code business. Codes should be implemented at the state and local levels because local regulators understand the unique circumstances of their communities. We build in Virginia, North Carolina, and South Carolina, and they are all completely different, particularly with regard to codes.
In North Carolina, we do a very good job interpreting and enforcing codes, but we have resources and staff to make sure that the governing bodies know our concerns.
I am concerned about the states that think they must adopt each new set of model codes without considering their local conditions. Some states may not have the resources to amend the codes to suit their market conditions. Adopting new building codes is expensive. Building departments need to update their procedures, resources, and training. Constantly changing the codes can also be confusing for builders and building officials.
We also want to work on the section of the 2022 Inflation Reduction Act that provides $1 billion to support state and local governments’ adoption of the most recent energy codes, which currently is the 2021 International Energy Conservation Code [IECC]. But the money is going into the state coffers, not to homeowners, who could pay thousands of dollars more for a home to meet the 2021 IECC. And increased energy conservation requirements, which always cost more up front, do not offer homeowners the paybacks they are promised.
We are also working to prevent the U.S. Department of Housing and Urban Development [HUD] and the U.S. Department of Agriculture [USDA] from adopting the 2021 IECC and ASHRAE 90.1-2019 as the minimum energy-efficiency standards for certain single-family and multifamily housing programs. While it will impact a small percentage of the housing market now, it primarily affects the folks who can least afford it. And the concern is that Fannie Mae and Freddie Mac will follow, which would essentially impose a national energy code mandate on about 90% of the housing market.
CB: There’s a lot of talk about the effects of insurance companies that are unwilling to insure new homes and the rebuilding effort of new homes going forward in high-risk areas—and not just coastal areas anymore. How do you see that shaking out?
BH: Resolving insurance challenges is a significant issue that we need to address. It’s another barrier to affordability when homeowners either have to self-insure or pay a very high premium to buy a home in a high-risk area.
I've had oversight of NAHB’s Climate Change Task Force to deal with this issue. The task force focused on identifying gaps and challenges in current insurance products available to homeowners to cover losses from natural disasters and other climate-related losses. It also identified alternatives and recommended next steps to ensure our members and their customers have access to appropriate insurance products.
In addition to many insurance companies providing fewer options, drastically increasing premiums or dropping out of certain markets, there is also a growing gap between insured and uninsured losses. While a homeowner will want to replace their damaged home completely, insurance companies are less willing to take the risk because premiums won’t cover the full rebuilding costs.
CB: As you’ve led this task force, do you see a solution you're working toward, or are you still trying to figure it out? There probably isn’t a silver bullet, right?
BH: Unfortunately, the only silver bullet we see is not in this administration's holster, and that’s a federal backstop where the government would step in and cover rebuilding costs if a homeowner wasn’t insured or not adequately insured. However, creating that type of federal backstop is a significant challenge that we don’t expect to happen anytime soon. NAHB will continue to explore all available options at the local, state, and federal government levels to address these concerns.
CB: Let’s switch gears. How did you get started with NAHB and when did you decide to take leadership roles?
BH: I didn't join my local associations until I was in my 40s. Even though I'm a third-generation builder, I don’t think anyone in the first two generations even knew there was such a thing.
But I was victim to a very good associate member at our local block plant, who was a crusader. Every time I’d walk in the door, she’d ask me about coming to a meeting. I finally went to my first meeting and I was blown away. I saw a lot of friends who were in the building business. I thought, there’s something going on here. So, I joined.
I quickly got involved in our state lobbying efforts, and I was intrigued by the fact that we could meet with our legislators, and they were willing to listen to our issues.
When I had the opportunity to attend NAHB’s lobby day in Washington, D.C., I was once again amazed that we could interact with policymakers and be part of the legislative process.
After serving as president of our local association, I served at the state association, and then I got involved at the national level.
CB: Through those experiences, what have you learned about working with policymakers and agencies? What is a good example of that?
BH: The greatest thing I’ve learned is the importance of building relationships and finding common ground with policymakers and local officials. For example, when we were having issues with a local inspection department in North Carolina, our local association created a working group to meet with the department once a month. We discussed where each side saw challenges and how we could work together better. Our open dialogue with the director, combined with each side being willing to make changes, resulted in a more efficient process for us in the end.
This proves that working together for a common good just makes sense, and it works.