Randy Noel, chairman of the National Association of Home Builders (NAHB) and a custom home builder from LaPlace, La., today issued the following statement after President Trump threatened to impose tariffs on an additional $267 billion worth of Chinese goods:
“Though well-intentioned, President Trump’s threat to slap an additional $267 billion worth of tariffs on Chinese goods will be counterproductive by raising costs for millions of American consumers and businesses that rely on these products, including home builders. These tariffs would be in addition to $200 billion worth of proposed tariffs that are already in the pipeline and could act as a tax increase of up to $2.5 billion on the residential construction industry.
“Currently, tariffs on steel imports and Canadian lumber shipments into the U.S. are needlessly increasing the cost of building materials and exacerbating the housing affordability crisis. Rather than escalating the situation, NAHB respectfully urges the administration to move quickly to resolve these trade disputes in a manner that won’t tax American workers and consumers.”
With Fannie Mae and Freddie Mac now marking their tenth year of conservatorship, the National Association of Home Builders (NAHB) today called on Congress to make it a priority to enact comprehensive reform to the nation’s housing finance system.
“To ensure a stable housing finance system that will support the future of homeownership and affordable multifamily housing in America, Congress must fix the structural flaws inherent in Fannie Mae’s and Freddie Mac’s government charters that contributed to the housing finance crisis,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La.
Today, House Financial Services Chairman Jeb Hensarling (R-Texas) and Rep. John Delaney (D-Md.) issued a draft of a housing finance reform bill that includes a federal government backstop to maintain stability in the market during times of economic turmoil.
NAHB believes a federal backstop is a critical element that must be incorporated into any overhaul of the housing finance system. NAHB is also urging Congress to enact further reforms that would:
- Preserve the successful multifamily housing finance framework;
- Continue the roles of the federal government housing agencies;
- Provide an equal playing field for small lenders;
- Restart a fully private mortgage-backed securities market; and
- Enhance the activities of state and regional sources of housing funding.
“Comprehensive legislation that incorporates these elements will ensure that housing credit remains readily available and affordable in the future, provide the foundation for a stable housing finance system and protect taxpayers,” said Noel. “And as Congress deliberates, the administration needs to ensure that reforms put in place during conservatorship that have enabled Fannie Mae and Freddie Mac to better facilitate mortgage liquidity are not cast aside.”
REIT returns in August outpaced gains seen the month before, with health care REITs posting the largest advances among all property types.
The total returns of the FTSE Nareit All REITs Index rose 2.3 percent in August, while the S&P 500 rose 3.3 percent. In July, the FTSE Nareit All REITs Index rose 0.8 percent. The total returns of the FTSE Nareit Mortgage REIT Index gained 0.2 percent in August, while the yield on the 10-year Treasury note was flat.
Layers of excessive regulation translate into higher rents, reduced affordability for consumers and on average, account for almost one-third of a multifamily project’s development and building costs, the National Association of Home Builders (NAHB) told Congress today.
Testifying on behalf of NAHB before the House Financial Services Subcommittee on Housing and Insurance, Steve Lawson, chairman of The Lawson Companies based in Virginia, said that overregulation of the housing industry is felt at every phase of the building process.
“It results from local, state and federal mandates,” said Lawson. “It includes the cost of applying for zoning and subdivision approval, environmental mitigation, and permit, hook-up, impact and other government fees paid by the builder. In many cases, these projects become financially infeasible and, therefore, are not built.”
The congressional hearing on regulatory burdens on multifamily housing development was spurred in large part due to a new study by NAHB and National Multifamily Housing Council called Multifamily Cost of Regulation that details how regulatory costs account for 32 percent of the cost of developing new multifamily properties.
The new research shows that well over 90 percent of multifamily developers typically incur hard costs of fees paid to local governments, both when applying for zoning approval, and again when local jurisdictions authorize the construction of buildings. Furthermore, state and federal governments are increasingly becoming involved in the process and layering on additional levels of fees and regulations.
“Multifamily builders and developers are seeing strong demand, but there are headwinds that have impacted further development,” said Lawson. “Some developers have had difficulty getting projects off the ground due to regulatory burdens and neighborhood opposition in certain parts of the country.”
To help ease regulatory burdens and improve housing affordability, NAHB is urging policymakers to:
- Consider the cumulative effects of regulatory requirements to determine whether a new mandate is necessary to protect the health and safety of the public, or if it is simply a means to achieve a policy goal;
- Remove barriers to production of multifamily housing;
- Ensure that energy codes and standard are cost-effective, affordable and have a reasonable payback period of 10 years;
- Enact common sense updates to Davis-Bacon wage determination policies to help builders construct more affordable housing;
- Call on the Trump administration to resolve issues related to lumber and steel tariffs, which have needlessly raised the price of building materials; and
- Maintain and properly fund federal rental assistance and multifamily production programs to serve very low- and extremely low-income Americans.
Equity Residential (NYSE: EQR) said Sept. 4 that President and CEO David Neithercut will retire as CEO on Dec. 31. Mark Parrell, who currently serves as executive vice president and CFO, has been appointed president with immediate effect and will succeed Neithercut as CEO at year-end.
Special Registration Discounts Offered Through September
The National Association of Home Builders (NAHB) officially opened online registration today for the 2019 NAHB International Builders’ Show® (IBS), the largest annual light construction trade show in the world.
Celebrating its 75th anniversary, the show will return to the Las Vegas Convention Center, Feb. 19-21, after a two-year stint in Orlando, Fla.
The 2019 IBS will again co-locate with the National Kitchen & Bath Association’s (NKBA) Kitchen & Bath Industry Show® (KBIS) for the 6th annual Design & Construction Week® (DCW). The two shows are expected to host more than 2,000 exhibiting brands spanning over a million net square feet of exhibit space, for the largest annual gathering of the residential design and construction industry.
“As we kick off our 75th anniversary of the International Builders’ Show, we are thrilled to bring even more exciting offerings to our attendees than ever before,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “There is truly nowhere else that you can find such an array of innovative products, education sessions, special events and networking opportunities all in one place. This is the biggest show for the housing industry and is not one to be missed.”
Attendees with a full conference registration will also have access to more than 130 education sessions led by renowned experts on a wide range of industry topics. For those looking for more niche programming, the IBS Centrals which are free to all attendees, offer more targeted networking and education programs in such specialized fields as remodeling, design, 55+ housing and more. And the High-Performance Building Zone will feature real-world construction demonstrations and IBS Live presentations focused on what’s next in home building. Additionally, for the third year in a row, the IBS show floor will feature the CEDIA Pavilion, a space showcasing exhibitors who specialize in technology solutions for the home.
The 2019 show will kick off on the morning of Feb. 19 with an exciting Opening Ceremonies event featuring Emmy-award winning actor and comedian Dana Carvey and a performance from Blue Man Group. That evening, Drai’s Beachclub and Nightclub at the Cromwell Hotel will host the Official IBS House Party. Other events throughout the week include the Young Pro Party and the IBS Spike Closing Concert where attendees will close out the week by enjoying a performance by world-famous rock band, the Goo Goo Dolls.
Attendees will also have the opportunity to tour NAHB’s official IBS show homes, The New American Home® (TNAH) and The New American Remodel™ (TNAR). The homes are designed to showcase innovative building technologies, emerging design trends and the latest building products. The showcase products in the homes are provided by members of the NAHB Leading Suppliers Council, and Professional Builder and Professional Remodeler magazines will once again serve as the media sponsors of the 2019 show homes.
During September, IBS registrants can take advantage of several registration discounts. NAHB members can receive a free expo pass or a $100 discount off full registration if they register this month. For a full list of offerings, visit: www.BuildersShow.com/fees.
The NAHB International Builders’ Show is not open to the general public. Building industry professionals and their affiliates are invited to register by visiting the show’s website at www.BuildersShow.com.
[Editor’s Note: Complimentary registration is available to credentialed members of the working press. Visit www.designandconstructionweek.com/press for more information or to register.]
National Association of Home Builders (NAHB) CEO Jerry Howard issued the following statement on President Trump’s executive order on retirement security:
“NAHB commends President Trump for making retirement security an important national priority. This need is particularly acute in the residential construction sector, where most home building firms are small businesses with less than 10 employees. Therefore, I am particularly pleased to attend this event in Charlotte representing the nation’s home builders. By continuing to follow through on his pledge to reduce burdensome regulations, the president is taking an important step forward for American workers. The executive order removes needless regulatory barriers that will help more trade groups and small businesses to provide workplace retirement plans for their employees.”
Jacques Gordon, global head of research and strategy at LaSalle Investment Management, was a recent guest on the Nareit REIT Report podcast.
Gordon will be speaking on the economic outlook for real estate at Nareit’s SFO Forum 2018 on Sept. 24.
In terms of the real estate cycle, “we’re in a good place,” Gordon said.
Conditions across the entire hotel industry are “very healthy,” said Ashford Inc. (NYSE American: AINC) Co-President and Chief Strategy Officer Rob Hays, who was a guest on the latest edition of Nareit’s REIT Report podcast.