NAHB Leaders Discuss Obstacles to Home Building at U.S. Chamber Housing Summit
In partnership with NAHB, the U.S. Chamber of Commerce on Nov. 6 hosted a daylong housing summit that included several panel discussions featuring members of Congress, industry leaders, and state and local officials that focused on how to resolve the housing affordability crisis and boost the housing supply.
NAHB First Vice Chairman Bill Owens moderated a panel entitled “Breaking the Barriers to Building” that included Marty Mitchell, CEO of Mitchell & Best Homes based in Rockville, Md. Starting out the discussion, Owens summarized several industry challenges facing builders. “Workforce shortages, outdated zoning, slow permitting, regulatory control and supply bottlenecks. Every link in that chain adds costs,” he said.
Citing the permitting process as just one example of the many regulatory hurdles that builders face, Mitchell said, “in permitting, it’s not just a permit for a house. I have a project on a state road, I have to get answers from the state. You need a county road permit for the road you put in, you need a tree permit for reforestation. All these agencies have to provide permits for your project. This runs into a three- to four-year process, and it’s the same for a lot of other counties in Maryland.”
Mitchell encouraged local businesses and citizens to get involved with local home builders and realtors and learn the issues that they face on a daily basis. “Go to a local planning commission meeting. Find out what they are talking about. Permitting regulations are a disaster. Anything you can get your company to do to understand the permitting issues we face would be helpful.”
Betsy Conway, director of Lowe’s Foundation, spoke about labor shortages facing the construction industry. “We know the impacts are real,” she said. “Nine out of 10 contractors tell us they can’t find the workers they need. So projects are delayed, and it is driving a $10 billion loss in the construction industry.” She added that 41% who work in the industry are set to retire by 2031.
The National Association of Realtors tracks buyers and sellers of homes and found that last year just 21% of home purchasers were first-time buyers, which is an all-time low. In 1981, first-time buyers made up 44% of the market.
“What we are trying to impress on legislators is the time to work on the margins is over,” said Joe Harris, vice president of government advocacy for the National Association of Realtors. “Next year, (the first-time buyer) numbers will be historic lows yet again. Housing is infrastructure. It needs to be treated like how we build bridges and high-speed internet. It is essential to daily life. You can’t live without it.”
Noting the challenging tariff environment, John Crosby, president and CEO of the Window and Door Manufacturers Association, said that “we are in a moment of severe disruption renegotiating supply-chain relationships and dealing with our customers. The supply chain has to change so we can get more product to the jobsite.”
“We need to bring people together,” said Owens. “It will take cooperation to move this housing agenda forward. If we can get back to the point of letting builders build, we can’t wait to get started.”
NAHB Chief Advocacy Officer Ken Wingert also participated in a separate forum on the need to increase housing production to meet growing demand and improve affordability.
“People are frustrated,” said Wingert. “Affordability was the key word out of exit polls during Tuesday’s elections, and housing affordability is at the top of that list.”
With a nationwide housing shortage of roughly 1.5 million units, Wingert noted that this is clearly a business and economic issue. “Whether you are a big fortune 500 company or small local business, housing is part of your business plan because, if you don’t have housing close to your business, workers will not be working for you. If we are to grow as an economy, we have to have a place to house our workers, and it has to be a reasonable commute, and it has to be affordable.”
The event also spotlighted additional NAHB-supported policies and initiatives, including Sens. Pete Ricketts (R-Neb.) and Tina Smith (D-Minn.) discussing the ROAD to Housing Act, legislation that recently passed the Senate. NAHB looks forward to continued conversations with lawmakers on increasing housing supply.
In conjunction with the housing summit, the American Enterprise Institute and U.S. Chamber of Commerce released a report entitled “Strong Foundations: A Playbook for Housing and Economic Growth,” which recognizes that housing is an economic issue not just for the companies immediately involved in the housing industry but for all businesses and how they can support growing the housing supply.