BIA Advocacy Update

National Association of Home Builders News

NAHB comments on inflation and housing supply

According to NAHB Chief Economist Dr. Robert Dietz, while inflation is getting better, a remaining challenge is housing inflation. “Shelter inflation—rent and homeownership costs—are still rising at a 5.4% rate, and for the past year, more than half of overall inflation in the economy has been shelter inflation." The way to combat inflation is by building more housing. With a shortage of approximately 1.5 million housing units nationally, more housing is needed. 

One thing that will hopefully help with supply is mortgage rates. NAHB projects that by the end of 2024, rates will be below 6.5% and by the end of 2025, in the high 5% range.

However, Dr. Dietz exclaimed that “Home builders (will) continue to contend with elevated construction and regulatory costs." According to NAHB, almost 24% of the final sales price of a newly built single-family home is made up of regulatory costs. Every five years NAHB conducts a survey on regulatory costs, the most recent survey showed that those costs increased by 11% from 2016 to 2021 for an average home built for sale, faster than inflation.

To read the article, click here.

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To ensure the housing supply needed is produced, we encourage lawmakers to analyze the sensibility of current and future regulations. A quality, safe product is necessary, but every little bit adds up when it comes to cost. This is one of the ways we can work together to produce the supply that is desperately needed to combat high prices. 

Congress passes a short-term continuing resolution  

Congress recently passed a short-term continuing resolution that will keep the U.S. Department of Housing and Urban Development and about 20% of the rest of the government funded an additional week through March 8. Lawmakers also agreed to extend funding for about 80% of the rest of the government, which includes two additional weeks of funding for the National Flood Insurance Program.

BIA-RRV Minnesota Capitol Visit

On March 5-6, BIA-RRV staff are meeting with our Minnesota state legislators in St. Paul. If interested, please read the next advocacy update for information on what is discussed at the meetings. 

Thank you Commissioners George and Simmons

West Fargo Commissioners Mandy George and Mark Simmons announced that they will not run for reelection. We wanted to take a moment to thank them for their public service. We appreciate the time they spent with us through the years, particularly at our Building Industry Connect events where we were able to have great discussions surrounding industry issues.