The Economy's Effect on Building
Seems like a popular question whenever someone meets a builder these days is, "Do you have any work?" Obviously this is a current reflection of the economy and my industry is seen as the leading factor in today's woes. But it is this same industry that defiantly states that the recession will end in 2009. And according to the National Association of Home Builders (NAHB) and Federal Reserve Chairman Ben Bernanke, 2010 will be a year of recovery, expansion, and sustainable economic growth.
Interest rates remain low and housing affordability continues to surge. Tax credits will hopefully lure more first time buyers into the market while financial incentives for home owners to go green on their renovation projects have never been greater - up to $1,500 for installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps.
By no means, however, during this discourse or otherwise, can the tragedy of the current economic climate be avoided. Housing starts and home prices are at or near record lows and consumer and builder confidence alike remains dismal. In light of this, President Obama's proposal to reduce the value of the mortgage interest and real estate tax deductions for homebuyers and homeowners in order to pay for an expanded health care initiative seems misplaced. NAHB chairman, Joe Robson recently stated,
"...this is not the time to talk about raising taxes on homebuyers and homeowners. This proposal will increase the cost of housing for many middle-class families, particularly in high-cost areas such as California and the Northeast, which will only further undercut the housing market, exert more downward pressure on home values and work against the President's efforts to stabilize housing and turn this economy around."
No doubt, local and national building associations will remain persistent in our efforts to convince the White House and Congress to devote more attention to the building industry and our partner homeowners.
Far from all bad, I remain optimistic for '09. The recent turnout at the Capital Home & Garden Show at the Dulles Expo Center was very encouraging. Homeowners and industry partners reconnected for what promises to be an exciting year and are encouraged to reconvene when the Chamber of Commerce presents the Fauquier Home & Business Expo this spring. Prior to this, NVBIA builders and Associates will meet at the upcoming "Meet the Builder" networking function — giving members the opportunity to develop new strategies and to reaffirm our value and commitment to you, the client.
As a local business leader and president of the NVBIA Fauquier Chapter, I would like to hear from you. The industry as a whole depends on your input and continued support. Please use our contact form to send your questions and comments, or write to "Ask a Builder" at P.O. box 294, Catlett, VA 20119.
The Northern Virginia Building Industry Association, a 72-year-old trade association, is committed to serving the housing industry within the following six Northern Virginia counties: Alexandria, Arlington, Fauquier, Fairfax, Loudoun and Prince William. On behalf of its members, NVBIA works to create an economic and political climate in which the building industry is able to effectively meet the demand for affordable, attractive, safe, well-planned and environmentally-sensitive residential and business communities.
NVBIA membership includes membership in HBAV: Home Builders Association of Virginia, which focuses on issues on the state level, and NAHB: National Association of Home Builders, which concentrates on Capitol Hill and other federal agencies.
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3409 Catlett Road, Catlett, Virginia 20119