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EXECUTIVE VICE PRESIDENT
NAHB EFFORTS ARE CRITICAL TO OUR MEMBERS
The National Association of Home Builders (NAHB) has been working diligently on the lumber tariffs that have affected millions of households. They recently called on the Biden administration to negotiate a new softwood agreement with Canada that could end Canadian tariffs. For those of you that might not keep up with news from NAHB, the administration announced on March 22nd that it had reached a deal with the United Kingdom to lift steel and aluminum tariffs imposed in 2018.
NAHB has been lobbying the Biden administration and our elected officials in Washington to negotiate a long-term trade agreement with Canada that will put an end to harmful tariffs and ensure that home builders can have access to lumber at affordable prices. We all know that our nation is in the midst of a housing affordability crisis and lumber tariffs have contributed significantly to this with the average cost of a median priced new home increasing by $18,600 since last August.
This ongoing trade dispute with Canada has gone on long enough. With the increase in inflation, the tightening of the credit market, and the ongoing supply chain issues, housing affordability is being severely challenged. Reducing these tariffs would have an immediate impact on the United States lumber markets and housing affordability too.
Housing affordability continues to be a critical concern. Dayton Schrader with the Schrader Group recently shared that in 2021, GSABA members started and closed 20,000 new homes in the greater San Antonio market area. In 2022, 22,500 new home starts and closings are forecasted. These numbers constitute back-to-back record years.
Schrader also noted that the average price of a home listed in the Multiple Listing Service (MLS) has gone up from $269,885 in 2020 to $358,172 in 2022. That is a $88,287 increase in home prices or 25 percent in two years. During the same time frame the average number of ‘days on market’ has decreased from 92 days in 2020 to 45 days in 2022. What’s more, even more homebuyers are being priced out of our local market.
An interesting statistic that Dayton shared was the number of MLS sales reported by the San Antonio Board of Realtors (SABOR) has decreased over the past five months from 3,564 sales in September 2021 to 2,070 sales in February of 2022. The lack of home inventory means higher home prices — which puts the American dream of home ownership out of reach for many who may have been able to purchase a home before.
NAHB Chief Economist Robert Dietz provided an overview on March 28th of what the elevated pace of inflation is doing to not only challenge housing but the United States economy. Dr. Dietz wrote in his latest Eye on Housing column that this has played a significant part in the tighter credit market conditions.
In closing, we are closely monitoring the pending Supreme Court decision in a case brought by Idaho couple Chantell and Mike Sackett
KRISTI SUTTERFIELD
on the Clean Water Act (CWA). I have written often in my column about the Waters of the United States “WOTUS’ rules and the negative impact it continues to have on our industry.
The Environmental Protection Agency (EPA) along with the United States Corps of Engineers announced on September 3rd, 2021, that the agencies were halting implementation of the Navigable Waters Protection Rule (NWPR) and they are interpreting WOTUS consistent with the pre-2015 regulatory regime until further notice. This unilateral decision by the agencies without public input means that landowners and homebuilders must follow the federal definition of WOTUS that existed prior to the Trump and Obama administration’s WOTUS rules.
Given the severe financial penalties stakeholders could face for conducting standard land development or agricultural practices, we are alarmed about this recent turn of events. In a move supported by NAHB, all 50 Republican senators signed onto to a letter to request that the EPA halt its WOTUS rule making while the Supreme Court considers the Sackett case. In addition, 200 GOP House members sent a similar letter to EPA Administrator Michael Regan this month urging him to halt the rulemaking until the Supreme Court rules on the case.
We will keep you informed on NAHB’s efforts in Washington and our efforts to educate our elected officials that represent us in DC.
Thank you for your continued support. Please don’t hesitate to reach out to me or a member of my team if we can be of service to you.
Warm Regards,
10 APRIL 2022 | GREATER SAN ANTONIO BUILDERS ASSOCIATION