Before the American Economic Recovery and Reinvestment Act was signed into law on Feb. 17, CUSTOM HOME conducted a survey of its readers to see what custom builders think the government can—or should—be doing to reinvigorate the housing market. Custom builders were quite vocal in sharing their opinions on federal involvement in solving the housing and economic crises. Here are a few of the most-suggested actions:
Tax credits for first-time home buyers;
Incentives for all home purchases;
Reduce mortgage rates;
Encourage banks to begin lending again to consumers and builders; and
Tax incentives for energy efficiency improvements or alternative energy installations. Several builders said the federal government should keep its nose out of the housing industry altogether and do nothing. “The economy relies on supply and demand. This equation will balance on its own and emerge stronger regardless of the result … not every home builder, architect, or installer needs to survive for the economy to prosper,” one anonymous respondent told us. Another wrote, “They can do little and should do nothing. A dramatically reduced housing industry will be required for at least a decade. Unfortunately, this will be the case for custom homes from here on.”
One philanthropist proposed turning unsold surplus homes into low-cost housing for single mothers and retirees. Another wishful-thinker suggested a monthly rebate for taxpayers “of at least $1,000 for six months; cut capital gains taxes, cut the corporate tax rate, investigate all the arrogant senators and [members of] Congress and see what they spend their salaries (our tax money) on, and stop lying to us about the phony stimulus spending.”
The signed stimulus package provides strategies for easing the nation’s financial stresses, both immediately and longer term. The emphasis is on job creation through, among other actions, greening the energy industry, repairing U.S. infrastructure, and updating existing homes and federal buildings for energy efficiency. But there are also measures for preventing foreclosures and to encourage consumers to make home purchases or energy improvements. Time will tell whether any of these measures will have the desired effect on the crippled housing industry.
