NAHB Commends House Passage of Forestry Bill
The House has passed NAHB-supported legislation that will contribute to better forest management practices, help strengthen the nation’s housing supply chain and promote affordable housing opportunities for all Americans.
The Fix Our Forests Act (H.R. 471) will help improve the U.S. forest management system by expediting environmental reviews and ending frivolous litigation that often grinds needed forest management projects to a halt.
Legal obstacles, as well as administrative barriers, have contributed to the U.S. Forest Service and Bureau of Land Management’s inability to effectively manage their lands. Consequently, overgrown and poorly managed forests have dramatically increased the risk of catastrophic wildfire across the country, which are extremely destructive to Americans living in fire prone areas as well as to the forest ecosystem.
Better forest management has positive ecological benefits along with the economic benefit of increasing the supply of federal timber products. Despite America’s vast timber resources, the United States does not produce sufficient lumber to meet the housing industry’s demand, requiring costly imports.
Lumber and wood products are a major cost driver in housing affordability, accounting for approximately 15% of the cost of construction for a single-family house. Additional domestic supply can help stabilize what is otherwise a volatile market for wood products, giving builders greater price stability.
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The recently enacted 21st Century ROAD to Housing Act includes a key NAHB-backed provision that will streamline environmental reviews, reduce permitting delays and provide greater certainty for builders.
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The percentage of new apartment units that were absorbed within three months after completion was down five percentage points in the first quarter, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).
New single-family home size had been falling since 2015 in response to declining affordability conditions. An exception occurred in 2021, when new home size increased as interest rates reached historic lows.
The latest report shows the Federal Reserve’s preferred inflation gauge remains sticky in July, complicating the Fed’s path to its long-term 2% target. Meanwhile, consumer spending remains resilient but is showing signs of slowing, with real consumer spending unchanged in July. Households are pulling back on spending amid persistent inflation.