A "silent" housing affordability crisis among working American families has been gathering momentum during a period of record economic growth and rising homeownership rates, according to Robert Mitchell, president of the National Association of Home Builders (NAHB).

Mitchell primarily blamed restrictive land use policies and excessive government fees and regulations for pricing out of the housing market teachers, firefighters, policemen and other key municipal workers whose wages have not kept pace with those in high technology fields of employment.

Mitchell was reacting to a new study released today by the Department of Housing and Urban Development and an earlier study released by the National Housing Conference. Both studies indicated that the number of working Americans who are unable to afford adequate housing is on the rise. The reports also revealed that shortages of affordable housing are most acute in the nation's fastest growing markets, where there has been a strong influx of high paying jobs for high-tech employees.

"In some California and other high-tech markets, teachers, firefighters and police officers are commuting more than 100 miles a day because they can't find affordable housing closer to their jobs," Mitchell noted. "That's unacceptable."

At a time when demand for housing is rising, new constraints on building and "no growth" sentiments in local markets are reducing the areas available for development and increasing the cost of housing, Mitchell said. For example, the National Housing Conference study stated that more than 278,000 jobs have been created in California's Los Angeles and Orange Counties since 1984, but only 78,000 new homes have been built there. It can take up to five years to secure a building permit in California due to the complicated regulatory process. "When an area simultaneously welcomes economic development while discouraging new home building, the policy is simply dysfunctional," Mitchell noted.

To address this problem, which Mitchell predicted would be a sleeper issue in the race for the presidency, the NAHB president called on Congress to enact "The Housing and Economic Opportunity Act of 2000," which was approved by the House in April by a 417-8 vote. The bill, authored by Rep. Rick Lazio (R-N.Y.), would help streamline the regulatory process and cut excessive red tape that can add thousands of dollars to the price of a new home. It would require federal agencies to submit a housing impact analysis with any newly proposed regulation that would negatively affect the availability of affordable housing.

"The Housing and Economic Opportunity Act would ensure that there is a clear recognition of the housing affordability implications every time government officials seek to address a problem by enacting new regulations," said Mitchell. "Excessive regulatory burdens are directly related to higher costs that push potential home owners out of the market."

Mitchell also pointed out that the bill provides the opportunity for cities and states to target homeownership assistance programs to firefighters, police, teachers and other municipal employees through existing CDBG and HOME initiatives. "Being able to live in or near the community where you work should be a basic right. And we all benefit from having these vital service providers in the neighborhood," he said.

The nation's home builders are committed to expanding housing opportunities inside cities and their close-in suburbs, Mitchell said. He pointed to an NAHB-spearheaded initiative with the nation's mayors and HUD that aims to build one million new homes in these locations over the next 10 years. The Building Homes in America's Cities program, unveiled at NAHB's National Housing Center in Washington last February, is well underway with projects in cities nationwide, said Mitchell.

Mitchell cautioned people about oversimplifying the issues on urban sprawl. Among other things, Mitchell noted the following:

Published: June 14, 2000

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