Statement from NAHB Chairman Bob Nielsen on President Obama’s Address to the Nation

September 9, 2011 – Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev., today issued the following statement regarding President Obama’s address to the nation last night:

“While the nation’s home builders commend President Obama for tackling critical employment issues, it’s discouraging that the Administration still fails to recognize that housing has a central role to play in restoring the nation’s workforce.

“In normal times, housing accounts for 18 percent of the nation’s gross domestic product, and nothing packs a bigger local economic impact than home building.

Constructing 100 average single-family homes generates more than

•  300 full-time jobs,
• $23.1 million in wage and business income and
•  $8.9 million in federal, state and local tax revenue.”

“Housing has traditionally led the nation out of past recessions and needs to be playing a far bigger role than it has so far in today’s lackluster recovery. That won’t happen until

• “Federal regulators move to end the credit freeze for new home production,
• ‘Banks allow qualified home buyers access to affordable home loans and
•  ”Policymakers acknowledge there is a clear need to support home ownership and get housing moving again to spur growth, create jobs and restore consumer confidence.”

Publisher’s comments:

I have a challenge for President Obama: Set goals for each leading indicator segment: housing, manufactoring, etc.

Based on the above numbers, set a goal to construct, say 50,000 a homes a month annualized to say 50,000 homes a month.

This would measurably produce 150,000 jobs a month, not to mention the jobs created in the manufactoring sector by the demand for appliances, carpet, paint, roofing supplies, and on and on.

Seventy percent of the new homes sold today are sold by real estate agents, so you would be helping this market grow, and sell more resales, because many new homes prospects purchase resales.

According to the National Association of Realtors, 50 percent of all homes sold are sold to first time home bueyrs.  Renters mostly who are facing rising rents, which force them to look for homes. The fact that homes can be purchased for less than it costs to rent in many markets is a critical piece of this plan.

Dr. David Crowe, chief economist for the National Association of Home Builders said that there is an estimated 2.1 million ‘unformed’ households, and the number many be as high as 3 million. These are families who have moved back with family and friends or never moved out the first time. This group consists of both potential renters and buyers, but the point is they are UNENCUMBERED.  It would not be surprising to me to find that a large percentage of this number actually worked in the construction industry and would welcome the opportunity to work in it again.

No short sale, no home to buy.

What all of this needs of course is a vision. It needs a sound. Visibility. There is no sweeter sound or site if you want to see the signs of a recovery than the site of rooftops, and the sounds of nails pounding away, with an electric saw humming in the background.

No other industry can offer the face of new homes being constructed.

Summary:

Primary target: First time home buyer

New Homes Permits Pulled: 50,000 per month

Jobs added: 150,000 a month

Promotion: NAR/NAHB combine marketing funds to push strong cobroker effort. Seventy percent of new homes sold in many markets are sold by cobrokers. This could be a major unifying and public testimony to the world about how two major housing groups, solved the housing crisis.

The night you speak  to the nation with a specific plan to create jobs through new homes construction will be the night your political star resurfaces.

What would be the disadvantage to you to at least have a discussion with representatives of these two organizations, but ask them to bring you a specific plan.

You asked for ideas. I hope you like these. This is America. We can do this.

David R. Fletcher, Founder

New Homes Niche

407. 352.5500 (direct)

dfletcher@newhomesniche.com

www.newhomesniche.com