This week the National Association of Home Builders commended House Financial Services Committee Chairwoman Maxine Waters for proposing draft legislation to address the nation's housing affordability crisis and called on the administration and Congress to make this issue a national policy priority.
Testifying on behalf of NAHB before the House Financial Services Committee, Steve Lawson, chairman of The Lawson Companies based in Virginia, said that the legislation drafted by the California Democrat underscores the role that additional costs, such as fees associated with infrastructure, play in housing affordability.
"The 'Housing is Infrastructure Act' focuses on reducing development costs for low-income housing," said Lawson. "This bill represents a positive step forward to remove barriers to affordable housing and will help builders and developers to construct housing at lower price points."
While the legislation would provide increased funding for important affordable housing programs, seek to lower impact fees and streamline the development process, Lawson cited several other steps that lawmakers should take to improve housing affordability.
"Addressing labor shortages in the construction industry, ensuring continued liquidity in the secondary mortgage market through meaningful housing finance reform, and enhancing the Low-Income Housing Tax Credit to promote the construction of sorely needed rental apartments must be part of any comprehensive affordable housing strategy," he said. "NAHB is also urging federal policymakers to adopt sensible workforce development and immigration policies that will help the residential construction industry fill open jobs."
Excessive regulations are also contributing to the housing affordability crisis. On average, regulations imposed by government at all levels account for nearly 25 percent of the price of building a single-family home and more than 30 percent of the cost of a typical multifamily development.
"Regulatory reform is important because it will help improve housing affordability by lowering development costs," said Lawson.
The NAHB/Wells Fargo Housing Opportunity Index shows that housing affordability in the single-family market is at a 10-year low. Only 56.6 percent of new and existing homes sold in the fourth quarter of 2018 were affordable to families earning the U.S. median income of $71,900.
"As a nation, we can and must do better," said Lawson. "NAHB stands ready to work with Democratic and Republican lawmakers to enact sensible solutions to boost the supply of affordable housing."
The Federal Reserve cut its federal funds rate today by 25 basis points (bps) to a range of 2.0% to 2.25%. This cut represents a marked change in the direction of monetary policy in the first half of 2019.
Marking the one-year anniversary of the White House executive order on workforce development this week, Greg Ugalde, chairman of the National Association of Home Builders issued the following statement
Existing-home sales in the U.S. weakened in June 2019, as total sales saw a small decline after a previous month of gains. While two of the four major U.S. regions recorded minor sales jumps, the other two - the South and the West - experienced greater declines last month.
According to Freddie Mac's latest Primary Mortgage Market Survey, after declining for most of 2019, U.S. mortgage rates remained mostly unchanged this first week of July. The recent stabilization in mortgage rates reflects modestly improving U.S. economic data.
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