Meeting the Housing Affordability Challenge

What happens when the people who keep our communities running—teachers, first responders, grocery clerks, cooks, medical technicians, and city workers—can no longer afford to live where they work? It’s a reality unfolding in towns and cities across the U.S. as housing prices climb, urban density increases, and the supply of affordable homes falls further behind demand.

At the same time, rebuilding efforts in disaster-affected regions—like wildfire-ravaged California—combined with new state and federal housing mandates are pushing developers, nonprofits, and municipalities to find faster, smarter, and more sustainable ways to build.

That’s where Structural Insulated Panels (SIPs) come in. Once considered a premium choice for custom homes and commercial projects, SIPs are now being recognized as a practical, high-performance solution for affordable housing. Their speed of installation, built-in energy efficiency, and long-term durability make them an ideal fit for HUD-funded projects, Habitat for Humanity builds, and other energy-efficient housing initiatives.

The Urgent Need for Affordable Housing

From California to North Carolina, housing shortages are affecting families in every income bracket, but especially those at or below the median income. In Los Angeles alone, the Regional Housing Needs Assessment found that the city must add over 450,000 units between 2021 and 2029 to meet demand. And that was before disasters and inflation exacerbated the crisis.  Affordable housing developers are under pressure to:

• Build faster and with fewer trades
• Ensure long-term livability and durability
• Meet tight budget constraints and funding requirements
• Deliver energy-efficient, code-compliant homes for the communities that need them most
  
  

Why SIPs Make Sense for Affordable Housing Projects

Habitat for Humanity, Vail CO, Straten Flatts Neighborhood

SIPs address several of the most significant challenges in affordable housing construction, while also supporting compliance with HUD regulations and achieving energy efficiency goals.

Faster Construction:  SIPs are manufactured off-site and arrive ready to install. One trained crew can dry in a structure in a matter of days, cutting labor costs and reducing the need for multiple subcontractors.

Built-In Energy Efficiency: With continuous insulation and an airtight envelope, SIPs significantly reduce heating and cooling loads - cutting energy bills by up to 60%, which is essential for cost-sensitive tenants and long-term operational budgets. 

HUD-Approved System:  Premier SIPS are officially certified for HUD projects, with an approved Structural Engineering Bulletin (SEB-1128, Rev. 4) for walls and roofs. That makes compliance straightforward for government-backed multifamily and single-family housing builds.  View the Premier SIPS HUD Engineering Certification

Long-Term Durability:  SIPs resist warping, mold, and moisture, reducing the risk of future repairs or health hazards—something especially important in long-term affordable developments and publicly funded housing.

⇒ Learn how SIPs provide a building envelope solution that is 2x more energy efficient than traditional stick-framed construction. 

Examples of SIPs in Affordable Housing:  

Habitat for Humanity, Utah, Field of Dreams

⇒ Habitat for Humanity Field of Dreams, Utah:  Provides low-income homeowners not only with low-cost housing but also with low-cost utility expenses.  Through the utilization of Premier SIPS, each household can retain an additional $60-$80 in monthly savings.

⇒ Sarann Knight Apartments, Nevada: Community Development Programs Center of Nevada utilized Premier SIPS for exterior walls in a multi-story affordable housing project, achieving energy savings and faster construction timelines

⇒ Lofts at McKinley Senior Affordable Housing Apartments, Arizona:  The project, consisting of 60 single-story senior apartments, was funded through the Low Income Tax Credit Program, the city’s HOME Investment Partnerships Program, and the Arizona Department of Housing Trust Fund. 

⇒ Puyallup Tribal Long House, Washington:  The goal of this project was to create affordable housing for members of the Puyallup Tribe struggling with the challenges of increased urbanization, high unemployment, and low income.

 ⇒ Enchanted Hill Camp for the Blind, California: Faced with the devastating destruction from the Napa wildfires, Enchanted Hill Camp utilized Premier SIPS on the roof to achieve the stringent fire codes, gain significant energy efficiency, and resume operations much faster than anticipated.

⇒ San Carlos Apache Affordable Tribe Multi-Family Housing,  HUD-funded, Arizona: The General Contractor for this project, Native Nation Builders, never used SIPs before and trained a large number of Native Americans to install SIPs on the job.

Tap Into Available Tax Credits

In addition to HUD grants and LIHTC (Low Income Housing Tax Credit) programs, energy-efficient housing projects may qualify for significant federal tax incentives:

• 45L New Energy Efficient Home Credit:  Currently offering $5,000 per dwelling unit to the builder, this credit supports energy-efficient single- and multi-family homes (must meet ENERGY STAR or DOE Zero Energy Ready Home standards). Note: This credit is expected to expire early under new Congressional proposals.
• 179D Commercial Buildings Energy Efficiency Deduction:  Multifamily projects and developers can claim up to $5.00 per square foot based on modeled performance. Unlike 45L, 179D is not currently up for elimination and can be paired with other incentives.
• Combine with LIHTC Programs:  Affordable housing developments can also benefit from HUD’s Low-Income Housing Tax Credit program, and projects that combine LIHTC with SIPs can layer funding and sustainability goals.  LIHTC)receives a permanent 12 % increase in the 9% allocation and a lower Private Activity Bond financing threshold (from 50 % to 25%), effective 2026–2029. This means, that even though the individual residential dwelling unit credit for builders is going away, multi-family developers building affordable housing will have more tax credits available—and easier access to them.

⇒ Read more about Tax incentives and credit updates

Build Better Where It’s Needed Most

Affordable housing doesn’t have to mean lower quality. SIPs offer a path to build resilient, efficient, and long-lasting homes faster and with fewer materials, making them an excellent match for tight budgets and big impact.  Interested in building smarter for the communities that need it most?  Contact your local Premier SIPS rep to get started