The President will deliver his State of the Union address before a joint session of Congress and the American people on Tuesday evening. I hope he takes advantage of the moment to remind Americans about the need to lower housing costs while fighting for freedom of housing choice.
Housing affordability is on the mind of nearly every voter across the country this election year. The data tells us that the best way to try to stem the current housing shortage is by enacting policies that will help us build more housing.
On his first day in office, the President listed increasing housing opportunities among his top priorities. This is an objective that many Americans broadly share, and the address offers the President an opportunity to move this part of the Administration’s agenda forward.
“Neither one speech nor one single federal policy is going to solve the housing affordability challenges we face. Instead, alleviating the housing shortage requires a sustained commitment to building housing of all types, backed by public and private investment, through public-private partnerships and freed from outdated rules that slow construction and drive up costs.”
—Sharon Wilson Géno
For more than a century, housing policy in this country has lurched from one crisis to the next, treating symptoms with patchwork policies instead of dealing with underlying problems. The result is the shortage we face today—still felt across every region, income level and political affiliation, even as conditions have begun to improve for some markets. Our research confirms the scale of the problem: A joint study by the National Multifamily Housing Council and the National Apartment Association shows that we will need to build 4.3 million apartments by 2035 to meet housing needs.
The Administration has put some common-sense policies into place—easing regulations and eliminating barriers slowing down development and growth—that are important steps in the right direction, but even more needs to be done. I hope the President discusses those policies during the State of the Union and outlines a plan for how he intends to build on these efforts.
Members of Congress must understand one important part of creating more housing opportunity is ensuring that we can continue to create new Build-to-Rent homes and that so-called institutional investors, such as pension funds, life insurance companies and others, can provide the investment needed to help fund more housing. Build-to-Rent communities offer American families a place to call home while they consider future housing goals and are part of the solution for building communities now and for generations to come.
One of the primary investors in building this and other forms of rental housing are retired teachers, retired firefighters, and other middle-class Americans whose retirement savings are invested in building the housing America needs. Rental housing has historically been viewed as a safe investment that enables many average Americans to invest their money to help build communities and obtain a reasonable rate of return. It is a “win-win” for our country.
Neither one speech nor one single federal policy is going to solve the housing affordability challenges we face. Instead, alleviating the housing shortage requires a sustained commitment to building housing of all types, backed by public and private investment, through public-private partnerships and freed from outdated rules that slow construction and drive up costs. It also requires the Administration to lean into what we know works—building more housing—and resist repeating mistakes of the past.
The State of the Union is an opportunity for the President to focus on the following housing priorities.
Set Big Goals, Share the Effort
Eliminating America’s housing shortage cannot be the work of government alone. History shows that ambitious projects, from infrastructure to housing, succeed only when public and private partners work together. This is an “all hands-on deck” moment for housing. Existing programs, such as the Low-Income Housing Tax Credit and Housing Choice Vouchers, are already harnessing private investment for public good. The Administration should undertake a dialogue with the housing community on how best to modernize these tools and scale public-private partnerships to meet today’s demand. The Trump Administration should also support the Workforce Housing Tax Credit—a measure aimed at middle-income households facing severe cost burdens by helping construct workforce housing that working households can afford.
Reduce Barriers to Housing Construction
Too often, outdated zoning rules and lengthy permitting processes delay or derail new housing. States and localities that take a deregulatory approach are already seeing results. Austin, San Diego and other cities across the country, have taken aggressive steps to streamline their approval process for new development, making it easier for builders to bring new homes online. These reforms led to a rapid increase in local housing, allowing Americans to live their lives in a place that works for them.
Tell the Truth About Failed Rent Regulation Policies
Rent control and rent stabilization may appear to offer short-term relief, but Americans should not be fooled. Decades of evidence show that these efforts reduce rental supply, worsen affordability over time and cause the quality of existing housing to deteriorate. Communities that enact rent caps often see investment in new housing fall, and actually hurt renters. The President should use the State of the Union to discourage local governments from pursuing such failed policies.
As the President outlines his plans for the coming year, I hope he resists the temptation of promising quick fixes to the housing shortage such as limiting investment, impeding the development of Build-to-Rent homes or promoting harmful rent regulation policies and instead commits to the sustained, often difficult work of building more homes. That means aligning federal, state and local efforts with private capital and innovation, while clearing away outdated barriers that limit housing opportunities.
The path forward will not be easy, and it will require a multi-pronged approach, patience and significant investment. If the President adopts the right framework, it can go a long way towards closing the housing gap and ensuring that every American has a place to call home. Tuesday evening provides the President with an exceptional opportunity to articulate that vision. I’ll be watching and hope he takes advantage of this moment for housing.
Sharon Wilson Géno
President, NMHC
Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is where rental housers and suppliers come together to help meet America’s housing needs by creating inclusive and resilient communities where people build their lives. We bring together the owners, managers, developers and suppliers who provide rental homes for 40 million Americans from every walk of life—including seniors, teachers, firefighters, healthcare workers, families with children and many others. NMHC provides a forum for leadership and advocacy that promotes thriving rental housing communities for all. For more information, contact NMHC at (202) 974-2300, email the Council, or visit NMHC's website at nmhc.org.
