On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez discuss what’s next following the enactment of the 21^st Century ROAD to Housing Act, how state and local home builders associations (HBAs) are tackling key issues in their areas, and the latest economic data.

Next Steps: 21^st Century ROAD to Housing Act

After a long journey, the 21^st Century ROAD to Housing Act became law on July 11. But there’s still more to come, as the work shifts from passing legislation to crafting the regulations that stem from this bill.

“Our team’s already engaged,” Tobin stated. “We’ve got a tracker. We know where we need to make sure our voice is heard and the way we want to shape the legislation.”

Despite the fact that it passed without the president’s signature, it’s still a victory all around.

“Everybody deserves to take credit for this,” Tobin added. “Regardless of the signing ceremony or whether [President Trump’s] signature is on the bottom of it, it is now the law of the land. It is meaningful legislation, and it is going to add more supply, it is going to lower costs, and importantly, it signals that we are taking housing affordability seriously.”

Economic Factors for Housing

The NAHB/Wells Fargo Housing Market Index (HMI) fell again in July, marking the 15^th straight month of the index holding below 40, as uncertainty in the market continues to impact inflation and interest rates.

“The market’s going to remain constricted, and our members are going to see that,” Tobin noted. “Yes, they’re building. We’re still on pace to build over 900,000 new units, but we need to build 1.1 million or thereabouts … so unfortunately, until we get to a little more predictability in the larger economy, things are going to stay tough.”

“Builders keep trying to do what they can to keep doors open and to make sure they’ve got their crews working,” Lopez added, including offering sales incentives and dropping prices. “But the question is for how long? We just need some help, which is certainty.”

Local and State Advocacy Wins

A number of local and state HBAs have been touting advocacy victories in recent weeks, including the Housing for Every Delawarean Act in Delaware.

“More and more states are responding to the lack of housing or housing being allowed to be built by local governments and counties, and states are stepping in to pre-empt in many areas,” Tobin observed.

NAHB is actively monitoring additional activities and provides support — including the State and Local Issues Fund and the Legal Action Fund — to state and local HBAs to address key issues in their areas.

Listen to the full episode of the podcast below and subscribe to Housing Developments through your favorite podcast provider, or watch all the episodes on YouTube.