WASHINGTON, D.C. – Statement from the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA) in response to President Trump’s State of the Union address.
NMHC and NAA are encouraged by President Trump’s remarks regarding economic growth, regulatory reform, opportunity zones and infrastructure during tonight’s State of the Union address. We applaud his ongoing efforts to support job growth and break down regulatory barriers that impede construction of needed apartment homes and exacerbate our nation’s housing affordability crisis.
A signature achievement of the President’s housing policy this year was the establishment of the White House Council on Eliminating Regulatory Barriers to Affordable Housing, an effort of which NMHC and NAA are a part. This Council, chaired by the U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson, has done important work highlighting how overly burdensome regulations drive up the costs of development and worsen housing affordability challenges. A study by NMHC and the National Association of Home Builders (NAHB) found that regulations account for an average of 32.1 percent of multifamily development costs and that in a quarter of cases, that number can reach as high as 42.6 percent. Similarly, NAA’s Barriers to U.S. Apartment Construction Index found that complex approval systems are correlated to affordability issues – especially in complex urban markets.
Our nation needs to build 328,000 apartment homes each year just to keep up with demand. The apartment industry looks forward to continuing to work with the Trump administration and members of Congress to meet that demand and help address the housing affordability crisis.