More than 900 business professionals involved in residential construction gathered at Capitol Hill today, urging Congress to address the ongoing housing affordability crisis. This initiative is part of the National Association of Home Builders (NAHB) 2024 Legislative Conference.
“Members of the housing community from across the nation have come to the nation’s capital for the National Association of Home Builders (NAHB) 2024 Legislative Conference to deliver a powerful message: ‘The only way to tame shelter inflation (homeownership and rental costs) and to ease the housing affordability crisis is to build more homes and apartments,’” stated NAHB Chairman Carl Harris, a custom home builder from Wichita, Kansas.
The United States currently faces a shortage of 1.5 million housing units. In response, NAHB has proposed a 10-point plan aimed at reducing this shortfall and improving conditions for builders. Key elements include eliminating burdensome regulations, easing permitting roadblocks, and overturning inefficient zoning rules.
Housing advocates conducted over 250 meetings with their representatives and senators, focusing on three critical issues: adopting reasonable building codes, addressing shortages of distribution transformers, and promoting careers in skilled trades.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture have mandated new construction financed through both agencies adhere to the 2021 International Energy Conservation Code (IECC) or ASHRAE 90.1-2019 standards. Critics argue this mandate will significantly increase housing costs without offering substantial benefits to buyers or renters.
"Studies have shown that building to the 2021 IECC can add as much as $31,000 to the price of a new home," noted one critic. "It would require up to 90 years for a home buyer to realize a payback on the added upfront cost."
Advocates are urging Congress to reverse this policy by including provisions in the fiscal year 2025 Transportation, Housing, and Urban Development spending bill that prevent HUD from implementing this costly mandate.
A nationwide shortage of distribution transformers has also delayed housing projects. The cost of these transformers has risen by over 70% since the pandemic began, with wait times extending up to two years.
Congress could alleviate this issue by addressing supply chain disruptions and increasing funding in fiscal year 2025 appropriations specifically aimed at boosting domestic manufacturing capacity for distribution transformers.
Another significant concern is labor shortages within the construction industry. The sector needs approximately 2.2 million new workers over the next three years just to meet demand.
Advocates suggest that Congress fully fund Job Corps at $1.76 billion in fiscal year 2025 Labor-HHS appropriations bill and invest in education systems that encourage students toward skilled trades careers.
Senator Steve Daines (R-Mont.) emphasized his connection with homebuilding through his family's business started over four decades ago in Bozeman: “This is such an important industry,” he remarked. “You all deliver the American Dream, which is homeownership.” He also pledged support for extending tax cuts introduced in the Tax Cuts and Jobs Act set to expire at end-2025.
Representative Chuck Edwards (R-N.C.) spoke about government regulations' impact on small businesses: “Many of you have told me 25% of the cost of a new home is to satisfy needless regulations,” he said.
Addressing labor shortages, Edwards remarked: "We need more folks in skilled trades than going to a four-year college." He underscored practical skills over academic degrees for specific professions like welding.
___
