We recently read an NAHB article that discussed what they are doing in Washington D.C. with regards to the housing affordability crisis. While we don’t usually take on politics in our day-to-day operations, we felt this article was worth paraphrasing and interjecting what else we’ve learned and experienced as home designers. Read the full article here.
Affordability
As stated in the above article, affordable housing is in crisis. The reason—not enough housing to match the demands of those searching for homes. Whether it be homes, condominiums, or apartments, we know that prices to build homes continues to go up. And with that, the cost to rent or own has skyrocketed as well.
From the aforementioned report, NAHB testified at a recent Senate Finance Committee hearing and shared that while tax incentives will help, Congress needs to take broader actions.
Issues that have contributed to affordability issues include:
Supply issues
Building materials slowdowns and shipping issues
Change in regulations
Labor shortages
Construction costs increasing home costs
Entry level prices of homes
Steps the NAHB suggests Congress take (from the above article)
Remove the mortgage interest deduction and replace it with a 15% tax credit claimed against mortgage interest and real estate taxes paid
Strengthen the Low-Income Housing Tax Credit by enacting the Affordable Housing Credit Improvement Act (boosting production of affordable rental housing)
Supporting a proposal for a Middle-Income Housing Tax Credit
Address the housing tax incentives not indexed for inflation
Reconsider the current limits on the state and local taxes deduction
Suspend tariffs on Canadian lumber imports and negotiate with Canada on a new softwood lumber agreement
Reduce regulations that account for nearly 25% of the price of building a single-family home and 40% of a typical multifamily development
Help to ease the construction labor shortage and promote and fund job training
Ease bottlenecks that have contributed to home building material costs
Our thoughts based on conversations we’ve had with those in the industry
If you’re in this business, and we all are, we’ve had conversations, especially over the last few years, about affordable housing. It’s one thing to build a home for a client that has no money issues, and we need those clients, but we do have those that can’t afford housing. Do we have an obligation to help solve the problem?
What can be done about the current housing shortage? Fewer homes than ever are being built now.
Change zoning laws that restrict what kinds of homes can be built in many neighborhoods.
Talk with those in government that can be a voice for us.
Understand the recent Housing Supply Action Plan and determine what we can do to support it within our industry.
As home designers, builders, and contractors, it is important that we pay attention to what is happening with not only housing, but affordable housing. We know that we all believe that everyone is entitled to live in a safe and habitable home, no matter the circumstances. Here at RDS, we know that many of you we are in contact with see this as a problem that needs to be solved and we are willing to do what we can to help the situation. We encourage you to read the full article that we paraphrased and weigh in with your thoughts.