Housebuilders tell VP Harris her housing plan must address regulatory barriers

The National Association of Home Builders (NAHB) responded Vice President Harris’ Housing Plans which were unveiled on Friday as part of his economic agenda and found that while some elements of the proposal are positive, it fails to address a key policy area holding back the housing sector.

Harris’ plans called for up to $25,000 in down payment assistance for first-time home buyers, which she said would be given to more than four million people over four years if she won the presidency. She also called for three million new housing units to be built and would provide tax incentives to build new homes for first-time buyers and a $40 billion homebuilding innovation fund.

Carl Harris, NAHB president and a custom homebuilder in Wichita, Kansas, said in a statement that while the vice president’s focus on housing and home ownership is “laudable,” her plan does not address the regulatory barriers that prevent the industry from build. more inventory.

“Unfortunately, the plan makes no mention of reducing onerous federal regulations that add to the 24 percent cost burden on construction of single-family houses or the nearly 41% increase in the construction of a multifamily unit,” he explained.

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Vice President Harris outlined part of his economic agenda on Friday, which included a focus on property rights. (Allison Joyce/AFP via / Getty Images)

“Furthermore, following President Biden’s rent cap proposal, NAHB is concerned that efforts to target institutional investors will harm the growing single-family built-to-rent market, particularly those homes built for the rental marketfurther discouraging otherwise desperately needed housing production,” he added.

The NAHB statement said that tax credit for building new homes and apartments, as well as down payment assistance and the extended tax credit for first-time home buyers, would help boost demand.

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The NAHB said Harris’ plan failed to address regulatory issues that prevent new housing construction and limit supply. (/Getty Images)

“A tax credit to help builders build more basic housing and expanding and strengthening the Low Income Housing Tax Credit will help builders build much-needed new homes and apartments,” said NAHB’s Harris .

“But any tax incentives to support the production of starter homes must be geared to local market conditions and widely available. A $10,000 first-time buyer tax credit and $25,000 down payment assistance are positive demand drivers, but the plan needs to weigh more. on increasing supply as the nation faces a shortfall of about 1.5 million housing units,” he added.

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NAHB said Harris tax credits and down payment assistance for first-time homebuyers will boost demand. (Allison Joyce/via Bloomberg/Getty Images)

NAHB’s Harris pointed to the group’s own plan as a plan for the vice president to take a more comprehensive approach to the problems facing America’s housing market.

“NAHB’s 10-point plan to ease America’s housing affordability challenges focuses on removing obstacles that prevent builders from increasing the nation’s housing supply, which include elimination of excessive regulationsrepairing building material supply chains and adopting reasonable and cost-effective building codes, among other things,” Harris wrote.

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“Addressing these concerns would help the vice president achieve his goal of building 3 million new housing units,” said NAHB’s Harris. “NAHB looks forward to working with Democratic and Republican lawmakers at all levels of government to enact policies that allow homebuilders to increase housing production and allow more working families to obtain home ownership and rental opportunities.”

FOX Business’ Breck Dumas contributed to this report.