A decade ago, it was unthinkable that climate policy could become so deeply divisive in American politics. Yet here we are in 2025, grappling with a federal climate rollback that has left many in the building and construction world wondering what happened. For those of us designing the homes of the future—custom estates with geothermal heating, solar roofs seamlessly blended into Mediterranean tile, and energy-efficient glass walls that wrap around cliffside retreats—it’s more than policy. It’s personal. Because the very clients who demand energy-smart luxury are now left navigating a national policy landscape that has turned its back on the very incentives that once made sustainable building a sensible, even fashionable, investment.
Walk into any design meeting for a luxury home in Aspen or Pacific Palisades, and you’ll hear the same vocabulary tossed around with ease: net-zero energy use, radiant heat floors, rainwater harvesting, smart glass, passive solar orientation. These aren't the dreams of environmental activists; they are non-negotiables for high-net-worth clients who demand beauty with purpose. For them, green building isn’t just a lifestyle—it’s part of their identity, a form of legacy-building. And yet, the latest federal bill threatens the very tax credits and incentives that helped integrate these technologies into mainstream construction.
That paradox is hard to ignore, especially when construction trends continue moving in the opposite direction of federal policy. Custom home developers in states like Texas and Florida have seen a sharp rise in demand for energy efficiency features—not just because they’re eco-conscious, but because they’re practical. After multiple years of historic storms, fires, and floods, homeowners have seen firsthand that climate change isn’t an abstract concept. It’s the mold in their basement. It’s the sky-high insurance premiums. It’s the generator that saved their house while the grid failed.
Even in deeply conservative counties, builders have found it easier to sell energy-efficient design than ever before. Take the case of a retired couple in Scottsdale who built their final home last year. Their architectural brief included a net-zero HVAC system, reflective roofing to fight the desert heat, and low-VOC interior finishes. Not because they read it in an environmental magazine, but because they were tired of $800 cooling bills and were allergic to the chemical odors of traditional paints and carpets. Their builder, originally skeptical about green upgrades, now includes those features in all new builds without waiting for clients to ask. It’s just good business.
That’s what makes the current political climate so confounding. While the market marches toward green luxury, the law now seems to pull back. The repeal of tax credits for energy efficiency and renewable energy technologies—once bipartisan darlings—feels like a slap to an industry that was finally finding its rhythm. In high-end residential construction, solar panels and battery walls are no longer experimental; they’re expected. Not having them lowers a home’s resale value. But when federal support vanishes, these features become significantly more expensive, and that hits even the top of the market.
This shift could be chalked up to politics as usual, but there’s something deeper at play. Many in the GOP once championed energy efficiency as a conservative value—fiscally smart, energy-independent, and technologically forward. In fact, some of the most innovative green buildings in the country are in red states, thanks to regional builders who saw opportunity rather than ideology. But with the “One Big Beautiful Bill Act,” climate-friendly policies were sacrificed at the altar of sweeping tax cuts and short-term economic narratives. That trade-off may have pleased donors, but it unsettled plenty of voters who simply wanted to install solar without losing their incentives.
Still, there’s a quiet optimism among those who work in high-end construction. Because while policy may bend, client demand doesn’t. Architects continue to report record inquiries for homes with advanced insulation, energy modeling, and site-specific environmental resilience. Developers are investing in all-electric communities, some even forming private energy co-ops when the grid proves unreliable. And as the cost of clean technology continues to drop, many of these features are now less about incentives and more about smart design. In Malibu, a design-build firm reported that nearly every new project they’ve taken on in the past year includes passive cooling strategies and embedded solar shading. Not one of those clients mentioned the federal tax credits—they just wanted a home that could handle California’s shifting climate.
Even commercial construction is leaning green in unexpected places. A boutique hotel chain opening a new property in Charleston opted for energy-efficient building systems after being hit with astronomical insurance quotes tied to coastal risk. It was cheaper in the long run to build smarter than to insure the status quo. Their lead designer admitted she had no background in sustainability. She just saw that triple-paned glass and high-efficiency HVAC would save the brand hundreds of thousands of dollars a year—and win favor with discerning guests who increasingly equate luxury with responsibility.
Some developers are even seeing the return of features that once felt fringe. Earth-sheltered homes, green roofs, and stormwater management systems are finding their way into affluent subdivisions, not out of nostalgia, but necessity. After a flash flood swamped multiple properties outside of Nashville, one forward-thinking builder redesigned his next series of homes with elevated foundations and bio-swales disguised as ornamental gardens. Buyers loved the look, but what really sold them was the flood insurance discount.
What’s clear is that the construction industry isn’t waiting for Congress to catch up. In the absence of strong federal leadership, the blueprint for a resilient and energy-smart future is being drawn by architects, contractors, and homeowners themselves. That includes many former skeptics who now see that good climate design is also good business. Ask the project manager of a new luxury condominium in Miami Beach why they opted for reflective glass, a green roof, and battery backup systems. He won’t mention climate policy. He’ll tell you that buyers—many of them from Wall Street—won’t touch a unit without those features.
This all points to an unexpected truth. Even as climate policy falters at the federal level, the momentum behind sustainable construction continues to accelerate, especially among those with the means to demand the best. And in a country where the top tier often sets the trends, the long-term outcome may be less about laws and more about lifestyles. When the wealthy insist on carbon-neutral homes, off-grid power, and regenerative landscaping, those ideas trickle down faster than any bill passed in Washington.
So while many of us in the industry feel bruised by the latest legislative shifts, we’re not stopping. There’s still work to do, not just in lobbying Congress but in building what our clients are already asking for. Because whether they call it climate action or just smart living, the desire for sustainable, high-performance buildings is here to stay. And every blueprint we draw today shapes the neighborhoods, skylines, and possibilities of tomorrow.