BuildersOutlook2022Issue7 - Page 9

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2022Issue7 BuildersOutlook 9

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BuildersOutlook

PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS : NATIONAL , STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
6046 Surety Dr . El Paso , TX 79905 915-778-5387 • www . elpasobuilders . com
■ EXECUTIVE OFFICERS President Gus Loy , Loyalty Homes Vice President Delton Deal , Deal2Deal Custom Homes Secretary Jaime Gonzalez , Blue Sage Homes Associates Vice President Angelique Roman , Sierra Title Executive Vice President Ray Adauto , EPAB Immediate Past President Sal Masoud , Del Rio Engineering
■ BOARD OF DIRECTORS Jacob Barde , Tropicana Homes Kathy Parry , HUNT Laura Loy , Loyalty Homes Leti Navarrete , Custom Dream Homes Lydia Mlouhi , Crown Heritage Homes Lloyd Hamilton III , Hamilton Construction Samira Gonzalez , Icon Custom Homes Victor Robles , Maravilla Homes Andy Quintana , Lone Star Title Bea Lich , GECU Courtney Yeatman , WestStar Frank Estrada , Morrison Supply Henry Tinajero , WestStar Bank John Chaney , Hercules Industries Jorge Herrera , J & H Concrete & Post Tension Kathy Carrillo , Western Heritage Bank Luis Rosas , HUB International Patricia Martinez-Alvidrez , Stewart Title Randall Smith , Randall Smith CPA Financial Services Sandra Lucero , Builders Source Appliance Gallery Sam Shallenberger , WinSupply El Paso Ted Escobedo , Snappy Publishing www . elpasobuilders . com
VOL 2022 ISSUE 7
BuildersOutlook
PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS : NATIONAL , STATE AND LOCAL HOME BUILDING INDUSTRY NEWS
NAHB Urges Congress to Ease Housing Affordability Crisis
the single-family housing market plunged 12 Testifying at a Senate Finance Committee points in July , the largest single-month drop in
hearing July 20 regarding the role of tax the history of the HMI , except for the 42-point incentives in affordable housing , the National drop in April 2020 .
Association of Home Builders ( NAHB ) told Congress can take several steps to help Congress that the housing affordability crisis is reverse this trend . On the tax front , the changes far-reaching and will require action on several brought by the 2017 Tax Cuts and Jobs Act fronts , not just the tax arena . significantly reduced the number of taxpayers
who itemize by doubling the standard deduction . “ The housing affordability crisis is the result of This effectively changed the mortgage interest
failing to produce enough housing to match deduction into a tax benefit that is now geared demand ,” said NAHB Chairman Jerry Konter , a primarily to wealthy households . home builder and developer from Savannah , Ga . “ A better policy is to scrap the mortgage “ If we are going to solve this crisis , we must interest deduction in favor of a 15 % tax credit drive down the cost to build as well as the cost claimed against mortgage interest and real to own or rent . Well-structured housing tax estate taxes paid ,” said Konter . “ This incentives can help us achieve this , but homeownership tax credit would offer a more Congress needs to take broader action as well .” effective and progressive tax incentive , help firsttime home buyers and young couples with
Supply-side challenges including building material production bottlenecks , excessive growing families , spur job and economic growth , regulations and labor shortages coupled with and keep the nation ’ s long-standing commitment rising inflation and increased mortgage rates to housing .” have exacerbated the housing affordability crisis Konter also urged lawmakers to strengthen the by raising construction and home costs ,
Low-Income Housing Tax Credit by enacting the particularly as they relate to the entry-level Affordable Housing Credit Improvement Act to
market . boost production of affordable rental housing . “ A year ago , nearly one-quarter of new homes The bill would finance more than 2 million
were priced under $ 300,000 . Today , it ’ s 10 %,” additional multifamily units over the next decade said Konter . by increasing the credits allocated to each state Recent housing data indicate the affordability and expanding the number of affordable housing
crisis is worsening , as the Commerce projects that can be built using private activity Department reported yesterday that single-family bonds .
housing starts fell below a 1 million annual pace NAHB also supports Finance Committee in June and registered the lowest production Chairman Ron Wyden ’ s proposal for a Middlelevel in two years . The lackluster housing report Income Housing Tax Credit , which addresses a is in line with NAHB ’ s latest Housing Market growing need for affordable workforce rental Index ( HMI ), which shows builder confidence in housing . Konter also urged Congress to address the many housing tax incentives that are not indexed for inflation , such as the capital gains exclusion on the sale of a home , and asked lawmakers to reconsider the current limits on the state and local taxes deduction to help home owners ease cost burdens in high-tax states .
Outside of the tax arena , NAHB is urging Congress to take the following steps to make housing more affordable for home owners and renters alike :
• Call on the Biden administration to suspend tariffs on Canadian lumber imports into the U . S . that are contributing to unprecedented price volatility and raising housing costs and to immediately enter into negotiations with Canada on a new softwood lumber agreement .
• Reduce burdensome regulations that account for nearly 25 % of the price of building a single-family home and more than 40 % of the cost of a typical multifamily development .
• Help ease a chronic construction labor shortage that is delaying home building projects and increasing construction costs by promoting and funding job training programs to prepare individuals for careers in home building .
• Act to ease production bottlenecks that have contributed to home building material costs rising 19 % year-over-year .
© 2022 Builders Outlook is published by the El Paso Association of Builders and Snappy Publishing , LLC
The El Paso Association of Builders is a 501C ( 6 ) trade organization .
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