The National Association of Home Builders (NAHB) has announced a comprehensive 10-point housing plan aimed at addressing the ongoing housing affordability crisis in the United States. NAHB Chairman Carl Harris emphasized the critical need to increase the supply of homes to improve affordability, stating, “The lack of homes is the primary cause of growing housing affordability challenges.”
Shelter inflation, which includes rent and homeownership costs, has been on the rise, with more than half of overall inflation in the economy attributed to rising housing costs. Harris highlighted the importance of building more attainable and affordable housing to effectively tackle shelter inflation, especially with elevated interest rates for mortgages and development loans.
The 10-point plan outlined by NAHB includes various initiatives that can be implemented at the local, state, and federal levels to address the root causes of the housing affordability crisis. These initiatives range from eliminating excessive regulations that contribute to high housing costs to promoting careers in the skilled trades to address the shortage of construction workers.
Additionally, the plan calls for fixing building material supply chains to ease costs, passing federal tax legislation to expand the production of affordable housing, and overturning inefficient local zoning rules that hinder home construction. Measures to alleviate permitting roadblocks, adopt reasonable building codes, reduce impact fees associated with housing construction, and make it easier for developers to finance new housing projects are also included in the plan.
By implementing these practical solutions, policymakers at all levels of government can work towards fulfilling the promise of the Housing Act of 1949, which aimed to provide “a decent home and a suitable living environment for every American family.” NAHB emphasizes the importance of collaboration between the government and the home building industry to boost housing production, make homeownership more affordable, and prioritize housing as a national concern.
For more information on each element of the plan, visit nahb.org/plan.