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8. Housing generates wealth. Housing accounts for 32% of household wealth in the nation. Home owners have a total of about $8 trillion in home equity, which is often used as a nest egg for retirement or to cover college expenses.
7. A major housing gap. While the national homeownership rate stands at a record 68%, millions of working families are still struggling to obtain decent shelter. The homeownership rate for minorities lags 25 points below white households. In addition, more than 14 million still spend more than 50% of their income on housing or live in seriously substandard housing.
6. The job of housing America is far from complete. Home builders will have to construct 18 million new home and apartment units over the next decade just to keep up with rising population and household growth. Financing this housing will require $3 trillion annually in new mortgage loan originations. Such a growth rate will require strong primary and secondary mortgage markets and an ongoing commitment by the federal government to support the housing finance sector.
5. Growing need for affordable housing for America’s workers. As the number of immigrant, minority and female-headed households continues to grow over the next decade, demand for starter homes and affordable rental housing will increase. Unfortunately, more and more working families — including teachers, firefighters, nurses, police officers and other public servants — are being priced out of the local markets where they work and they are commuting two hours or more each day to work.
4. Smart growth. New household formations are expected to average between 1.3 and 1.6 million per year during the next decade. To satisfy this robust housing demand, local and state governments need to enact sound land-use policies and reform and streamline the zoning and regulatory process. Sensible growth management policies will meet a community’s housing needs and allow for construction of a mix of different types of housing in various price ranges. At the federal level, policy makers need to establish a more balanced environmental agenda that supports the twin goals of providing for a clean and healthy environment and meeting the nation’s housing needs.
3. Credit is the lifeblood of the housing market. Maintaining an adequate flow of credit is fundamentally important. During the next decade, America’s families will need 125 million mortgage loans, or an average of $3 trillion annually, for home purchases and refinancings. Therefore, policy makers must guard against any backdoor attempts to alter the regulations affecting the housing government sponsored enterprises in a way that impedes the ability of Fannie Mae, Freddie Mac and the Federal Home Loan banks to provide lenders with new mortgage products and ensure an affordable and steady flow of credit for home mortgages.
2. Meeting the housing needs of the underserved. The federal government should also support special programs and tax incentives that promote homeownership or help low- and moderate-income families buy or rent decent housing. Housing initiatives in Congress that enjoy broad bipartisan support, such as the homeownership tax credit legislation, the FHA zero downpayment program and improvements in the Low Income Housing Tax Credit, need to be enacted into law.
1. Elevate housing as a national priority. Housing — like other basic human needs — should be a top national priority. By reaffirming this commitment to housing, the next Congress and Administration can help fulfill the promise of the Housing Act of 1949, which set a goal of "a decent home and a suitable living environment for every American family."
For more information, e-mail Michael Strauss or call him at 800-368-5242 x8252.
To read about NAHB's efforts to promote a national housing agenda and discuss priority housing issues with top Democratic leaders at last week's Democratic National Convention in Boston, click here.
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