Page 18 - Builder Brief June 2026 Issue

A D V O C A C Y
NAHB URGES CONGRESS TO ADVANCE
HOUSING SUPPLY REFORMS
The National Association of Home Builders (NAHB)
told Congress today that increasing housing supply is
essential to improve affordability and make housing more
attainable.
Testifying before the House Small Business Committee
on how small builders can help close the nation’s housing
gap, NAHB Chairman Bill Owens, a home builder and
remodeler from Worthington, Ohio, said the core issue
is a shortage of housing.
“NAHB estimates the country is facing a structural
shortage of about 1.2 million homes,” said Owens. “Small
builders are doing all they can to increase housing supply,
but they cannot overcome the shortage as long as rising
costs and system delays continue to hold back progress.”
While the causes of this underbuilding are multifaceted
and complex, Owens noted that NAHB commonly cites
them as the “Five Ls” – a lack of labor, lots, lumber
and building materials, lending for development and
construction purposes, and legal and regulatory barriers.
Owens said addressing these challenges is critical
to improving affordability and increasing production of
attainable housing, citing the following facts:
 The construction sector faces a persistent labor
shortage, with more than 200,000 unfilled industry
jobs. In 2024 alone, labor shortages prevented
roughly 19,000 homes from being built and extended
construction timelines for many small and midsize
builders by nearly two months on average.
 Regulatory costs make up about one-quarter of
the price of a new single-family home and an even
larger share of apartment costs because of delays
and zoning issues. These burdens make it especially
difficult to build entry-level homes for first-time home
buyers.
 Construction material costs—exacerbated by tariffs—
are up 46.1% since February 2020, which is far higher
than the 24.7% inflation rate over the same period.
He urged lawmakers to take the following
actions:
 Pass the CONSTRUCTS Act, a bipartisan bill
designed to prepare young adults for rewarding
careers in the construction trades.
 Reduce regulatory burdens that disproportionately
affect small businesses and home builders and
discourage new development, which is necessary
to lower housing costs.
18 JUNE 2026 | GREATER SAN ANTONIO BUILDERS ASSOCIATION
 Expand builders’ access to Small Business
Administration loan programs by allowing more flexible
loan structures, reducing administrative burdens and
encouraging broader lender participation.
 Ease federal permitting delays and overly restrictive
environmental requirements that limit lot availability
by increasing the cost and time needed for land
development.
 Help reduce material cost pressures by supporting
reliable building material supply chains.
“The bottom line is that the housing crisis is a supply
problem,” said Owens. “Congress can help by improving
access to capital, strengthening workforce pipelines,
expanding the availability of buildable lots and reducing
excessive regulatory costs and permitting delays. If we
want to make housing more attainable, we must make it
easier and less expensive to build.”