The National Association of Home Builders (NAHB) called on Congress to support policies that will enable an increased level of affordable housing construction.
Steve Martinez, a home builder from Boise, Idaho, testified today on behalf of NAHB during a House Small Business Committee hearing. During his presentation, Martinez linked rising housing costs for consumers to rising business costs for builders and developers.
“Shelter inflation – rent and homeownership costs – is still rising well above a 5% rate driven in large part by a nationwide shortage of 1.5 million housing units,” said Martinez. “The only way to tame inflation and bring housing costs down is to remove the barriers that are preventing home builders from increasing housing production … In today’s market, tighter lending conditions, a limited supply of land, permitting roadblocks and delays, and rising fees are all contributing to increased construction costs that make it increasingly difficult to boost the supply of housing.”
Martinez explained that regulatory costs account for nearly 25% of the cost of a single-family home and more than 40% of the cost of a typical apartment development. Increased regulations, especially energy building code requirements pushed by the Biden administration, make it more difficult for builders and developers to create affordable housing.
“NAHB supports legislative efforts to ensure that all regulations are designed with small businesses in mind, that regulatory rulemaking agencies are required to consider the true cost of regulations on small businesses, and that regulatory rulemaking agencies comply with the letter and intent of the law in crafting new regulations,” said Martinez. “Therefore, NAHB urges Congress to pass legislation such as the Small Business Regulatory Flexibility Improvement Act, which would require federal agencies to consider the direct and indirect economic effect of a rule on small businesses.”
Martinez also addressed supply chain challenges by calling on Congress to invest in the domestic production and reduce trade barriers of sorely needed building materials, including distribution transformers. He noted the price of distribution transformers is up 72% since the start of the pandemic and wait times for transformers often range from 12 to 24 months.
“NAHB stands ready to work with members of this committee and the full Congress to achieve thoughtful, effective policies to increase the supply of housing and make homeownership and renting more affordable,” he said.
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If it’s good for the country, the people & the economy then our critters in govt will shoot it down. Unless they can find a way where they can enrich themselves. Haven’t you noticed? Our corrupt govt is at war w the American people.
Although there is a need for less regulations and a better supply line
once the government gets involved to, “help,” it will get a lot worse
and more costley.
I have been in the business for almost 54 years and I know the Govt.
is the problem not the solution.
Lol, this is hilarious. The same government that causes the problems is begged for handouts. Affordable housing is pure corruption. Stop affordable housing.
Make sure the builders stick to a specifically affordable housing. But this government is pretty bad because we can’t get anything done no matter who wins. 2 party system and bad social media
All this talk about how the government involvement makes it more expensive and worse in general for everyone, and how the government cronies try to enrich themselves in the process…Well, you are only saying these, because they are true. We all know it, but now what? Another fake election? More regulations about the regulations?