Key Issues for Housing Nation Wide

05 Feb 2019 9:50 AM | Colleen Corrigan (Administrator)

NAHB continues to focus on several issues, including:

  • Regulatory Reform 

On average, nearly 25 percent of the price of building a typical new single-family home – almost $85,000 – is attributable to government regulation. Equally disturbing, the cost of regulation in the price of a new home is rising twice as fast as the average American’s ability to pay for it.
Meanwhile, government regulation accounts for more than 30 percent of the cost of an average multifamily development.

NAHB firmly believes that efforts to further regulate the housing industry must:

o   Be subject to greater oversight

o   Allow for increased public participation in the process

o   Be based on sound data

o   Only be undertaken after a careful consideration of the costs and benefits as well as the potential effects on small businesses.

  • Housing Finance Reform 

NAHB is a strong proponent of housing finance reform that would increase the role of private capital in the U.S. housing finance system but maintain a limited federal backstop to the nation’s housing finance system.

Federal support is particularly important in continuing the availability of the affordable 30-year fixed-rate mortgage, which has been a staple of the U.S. housing finance system
  • Labor Shortage/Immigration Reform

NAHB supports comprehensive immigration reform that will:

o    Safeguard our borders;

o   Establish a fair employment verification system; and

o   Create a market-based visa system that will allow more immigrants to legally enter the construction workforce as the housing industry gains momentum and the demand for workers increases.

  • Environment

NAHB supports a common sense, scientific approach to safeguarding the environment that reasonably balances protection of endangered species, clean air and clean water, with the need to allow local communities to grow and thrive.

The Year Ahead

·        Addressing ongoing housing affordability concerns will be the top issue for home builders in 2019.

·        With Democrats in control of the House and Republicans in charge of the Senate, the next two years give NAHB an opportunity to forge a new bipartisan coalition among housing advocates in both chambers to drive housing affordability -- both ownership and rental --  to the top of the national agenda.

·        Builders in the field report there is a strong demand for new homes but that prospective buyers have become increasingly gun shy due to rising mortgage rates in recent months coupled with the aggregate run-up in pricing.

·        A vibrant housing market is critical to a strong economy. Rising home costs threaten the ongoing housing and economic recovery.

·        Federal policymakers need to address this issue by taking appropriate steps to ease needless regulatory burdens that will help stabilize residential market conditions.

·        This year, the nation’s home builders will also ask federal policymakers to move forward on several other key issues, including:

o   Reforming the nation’s housing finance system to ensure that single-family and multifamily housing credit remains readily available and affordable.

o   Refining tax policy and enhancing the Low Income Housing Tax Credit.

o   Promoting policies and job training programs that will help ensure an ample supply of well-trained workers to build the nation’s homes.

o   Pursuing immigration policies that complement ongoing vocational training efforts and help fill labor gaps while protecting the nation’s borders. Creating a national flood insurance program that is predictable and affordable.

o   Enabling a supply of softwood lumber sufficient to meet demand.

o   Improving and streamlining the federal permitting process.

Economic Outlook

Looking forward, there are signs that conditions in the housing market should show continued modest improvement in the coming months:

·        While the economic recovery has been uneven, it continues to add jobs, a key driver for housing market recovery.

·        Growing household formations indicate solid demand for single-family homes and rental apartment units.

NAHB Chief Economist Robert Dietz’s analysis: “Despite a solid demand for homeownership, growing housing affordability concerns are causing consumers to hesitate on making a home purchase. Builders need to manage supply-side costs to keep home prices competitive for buyers at different price points. Policymakers also must act to ease needless regulatory burdens that will help stabilize residential market conditions.”

CMBA:
1124 West Saint Germain Street, St. Cloud MN 56301
320.251.4382 info@cmbaonline.org | www.cmbaonline.org
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