By BUILDER Magazine Staff Housing Supports
A new report issued by the NAHB shows housing accounts for about 14 percent of the nation's Gross Domestic Product, or about one out of every seven dollars spent in the United States each year. "New-housing construction and remodeling are powerful drivers of the nation's economic engine," says former NAHB president Bruce Smith.
1,000 new single-family homes generate:2,448 jobs in construction and related industries; approximately $79.4 million in wages; and more than $42.5 million in federal, state, and local tax revenues and fees.
1,000 new multifamily homes generate: 1,030 jobs in construction and related industries; $33.5 million in wages; and more than $17.8 million in federal, state, and local tax revenues and fees.
The NAHB is among the 26 housing and community development groups of the Community Homeownership Credit Coalition pushing for enactment of a federal homeownership tax credit to increase the quantity of affordable housing. Designed to help bridge the gap between the cost of developing affordable housing and the price that buyers can afford to pay, the proposed credit would provide investors as much as 50 percent credit of project costs for eligible home rehabilitation or construction.
The program, modeled after the Federal Low-Income Housing Tax Credit, would be administered by state housing agencies.
Other coalition members include The Enterprise Foundation, Fannie Mae, Freddie Mac, Habitat for Humanity International, Mortgage Bankers Association of America, National Association of Realtors, the U.S. Conference of Mayors, and United Way of America.
The market for new homes ended the year on a high note, with a 5.7 percent increase to a 946,000-unit rate in December," says Bruce Smith, former NAHB president. "That's the fastest sales pace since March 2001 and signifies a complete rebound to pre-recession activity levels. Additionally, in the year after purchase, buyers average spending is $8,900 on housing-related furnishings and property alterations.
The NAHB is disappointed in the final regulations issued in January by the National Marine Fisheries Service for protecting habitat of commercial fish species.
"The new regulations fail to address the concerns of home builders whose projects are near protected waters," says former NAHB president Bruce Smith. "Time-consuming and duplicative regulations drive up building costs." Every $1,000 home price increase disqualifies about 300,000 buyers.