|
Lydia Mhouli Crown Heritage Homes 2026 EPAB President
I wanted to dedicate this month’ s article to the challenges currently facing the homebuilding industry because housing affordability and housing supply have become some of the most important issues impacting families, communities, and economic growth both nationally and here in El Paso. These are not just industry issues— they directly affect the ability of working families to achieve homeownership and build long-term financial stability.
Nationally, the shortage of affordable housing continues to place significant pressure on the housing market. According to the
|
National Association of Home Builders, the country faces an estimated shortage of approximately 1.2 million homes. While affordability conditions have improved modestly compared to last year, many families still struggle with elevated mortgage rates, higher insurance costs, rising property taxes, and increasing overall living expenses. At the same time, builders continue facing higher construction costs, labor shortages, financing challenges, and growing regulatory burdens.
Although El Paso remains more affordable than many Texas and national housing markets, affordability pressures are still significantly impacting local families. Many buyers today are extremely payment sensitive, meaning that even small increases in interest rates, insurance costs, or monthly payments can determine whether a family qualifies for a home loan. Affordability challenges are no longer affecting only first-time buyers. Many middle-income families are also feeling the strain. One of the largest challenges continues to be elevated mortgage
|
rates and financing costs. In today’ s market, affordability is often less about the sales price alone and more about the monthly payment structure. Builders are also impacted by higher borrowing costs associated with land acquisition, development financing, construction loans, and operations. Rising material costs, fuel prices, transportation expenses, utilities, and labor costs continue to increase the overall cost of housing. Construction material costs alone have risen dramatically since 2020, significantly outpacing overall inflation.
Labor shortages also remain a major concern nationally and locally. Skilled trades such as electricians, plumbers, HVAC technicians, framers, and concrete crews continue to be in high demand. Workforce shortages not only affect construction schedules but also impact permitting, inspections, engineering, and overall development timelines. These delays ultimately increase costs and reduce housing supply.
Another important issue in El Paso is lot availability and infrastructure readiness, particularly in West El Paso.
|
Builders need predictable access to developed lots, utilities, drainage systems, and roadway infrastructure in order to maintain stable housing production. Delays in lot releases and infrastructure development can significantly affect affordability and supply.
Despite these challenges, I remain optimistic about the future of housing both nationally and locally. Our industry has consistently demonstrated resilience, innovation, and adaptability. Organizations such as the National Association of Home Builders, the Texas Association of Builders, and the El Paso Association of Builders continue advocating for policies that support affordability, workforce development, infrastructure investment, and responsible growth. Through collaboration between builders, industry partners, educators, local government, and community leaders, we can continue working toward solutions that strengthen housing opportunities and help more families achieve the dream of homeownership.
|