House Approves Revised Housing Bill
In a significant victory for NAHB and the broader housing sector, the U.S. House of Representatives approved an amendment to the 21st Century ROAD to Housing Act that removes a build-to-rent (BTR) sales provision that would have hurt affordability and reduced much-needed housing supply.
NAHB led the push to remove the provision, which would have required purpose-built single-family rental homes to be sold within seven years. According to NAHB and the Urban Institute, the measure could have cut rental housing supply by 40,000 to 72,000 units each year. It also would have displaced thousands of tenants annually, shrinking the rental market and putting further pressure on rents.
At a time of severe housing shortages and affordability challenges, BTR remains one of the few market segments adding tens of thousands of homes that otherwise would not be built. Many of these homes serve lower- and middle-income households.
The amended House bill also includes several other NAHB-backed measures to boost housing production:
• Increases and indexes multifamily loan limits. FHA-insured multifamily loan limits have not changed in 12 years and no longer reflect market realities. Raising and indexing these limits would better match construction costs and support new apartment development.
• It prrovides meaningful relief to community banks. NAHB members depend on community banks to finance residential construction, but fewer of these lenders remain on Main Street. The amended provision would strengthen community banks and expand access to HOME program reforms. These changes would improve flexibility and predictability by expanding eligible uses and streamlining environmental reviews.
• Evaluates the feasibility of point-access buildings. This would let HUD offer competitive grants for pilot programs to assess where these buildings are practical.
• Establishes a public land database. State and local governments receiving Community Development Block Grants would need to maintain a database of undeveloped publicly owned land.
• Exempts certain USDA infill reviews. Eligible USDA-assisted infill projects would be exempt from environmental studies or reports when specified conditions are met.
PRESIDENT'S MESSAGE
Challenges Facing the Homebuilding Industry
by Lydia Mlouhi
I wanted to dedicate this month’s article to the challenges currently facing the homebuilding industry because housing affordability and housing supply have become some of the most important issues impacting families, communities, and economic growth both nationally and here in El Paso. These are not just industry issues—they directly affect the ability of working families to achieve homeownership and build long-term financial stability.
Nationally, the shortage of affordable housing continues to place significant pressure on the housing market. According to the National Association of Home Builders, the country faces an estimated shortage of approximately 1.2 million homes. While affordability conditions have improved modestly compared to last year, many families still struggle with elevated mortgage rates, higher insurance costs, rising property taxes, and increasing overall living expenses. At the same time, builders continue facing higher construction costs, labor shortages, financing challenges, and growing regulatory burdens.
Although El Paso remains more affordable than many Texas and national housing markets, affordability pressures are still significantly impacting local families. Many buyers today are extremely payment sensitive, meaning that even small increases in interest rates, insurance costs, or monthly payments can determine whether a family qualifies for a home loan. Affordability challenges are no longer affecting only first-time buyers. Many middle-income families are also feeling the strain.
One of the largest challenges continues to be elevated mortgage rates and financing costs. In today’s market, affordability is often less about the sales price alone and more about the monthly payment structure. Builders are also impacted by higher borrowing costs associated with land acquisition, development financing, construction loans, and operations. Rising material costs, fuel prices, transportation expenses, utilities, and labor costs continue to increase the overall cost of housing. Construction material costs alone have risen dramatically since 2020, significantly outpacing overall inflation.
Labor shortages also remain a major concern nationally and locally. Skilled trades such as electricians, plumbers, HVAC technicians, framers, and concrete crews continue to be in high demand. Workforce shortages not only affect construction schedules but also impact permitting, inspections, engineering, and overall development timelines. These delays ultimately increase costs and reduce housing supply.
Another important issue in El Paso is lot availability and infrastructure readiness, particularly in West El Paso. Builders need predictable access to developed lots, utilities, drainage systems, and roadway infrastructure in order to maintain stable housing production. Delays in lot releases and infrastructure development can significantly affect affordability and supply.
Despite these challenges, I remain optimistic about the future of housing both nationally and locally. Our industry has consistently demonstrated resilience, innovation, and adaptability. Organizations such as the National Association of Home Builders, the Texas Association of Builders, and the El Paso Association of Builders continue advocating for policies that support affordability, workforce development, infrastructure investment, and responsible growth. Through collaboration between builders, industry partners, educators, local government, and community leaders, we can continue working toward solutions that strengthen housing opportunities and help more families achieve the dream of homeownership.
EXECUTIVE MESSAGE
Message from acting EPAB Executive Vice President
Edgar Garcia
2020 President - 2026 Vice President
El Paso Association of Builders - Bella Vista Homes
The last couple of months have tested the strength and resilience of the El Paso Association of Builders in ways few could have anticipated. Ray Adauto has served as the steady hand guiding the Association and his absence has been felt throughout the organization. From the daily operations to the relationships he cultivated across the home building community, there is no denying that Ray’s impact helped shape the EPAB.
Behind the scenes, I, along with EPAB President, Lydia Mlouhi and the Executive Board, have worked to ensure the Association remains stable and forward focused. Together, we have taken on the challenge of creating new systems and implementing processes designed to improve our efficiency. The leadership team has demonstrated that while change may be difficult, it can also create opportunities for the EPAB.
We are taking this momentum and moving the Association forward, that optimism was on full display during the recent EPAB Block Party membership drive. The event drew an outstanding turnout, bringing together builders, associates, and future members for an evening filled with networking. Most encouraging was the surge of new memberships, which has reinvigorated the Association and the growing excitement and engagement from the home building community signals that even during times of change, progress continues to build.
Who's Fueling Today’s Remodeling Market?
With elevated mortgage rates and limited for-sale inventory making it harder to move, many home owners are instead choosing to invest in the homes they already own.
In 2024, an estimated $670 billion was spent on remodeling projects, as roughly 20 million households (nearly one-quarter of owner-occupied homes) undertook home improvements ranging from large additions and major renovations to smaller alterations and upgrades.
NAHB analysis of data from the Consumer Expenditure Survey (CES) reveals how these remodeling expenditures varied across household characteristics. For example, married-couple households remain the dominant force in remodeling, accounting for the majority of both the number of projects and the amount of spending.
Families with children, particularly those with kids ages 6-17, are investing heavily in larger-scale improvements like finished basements, kitchen upgrades, and home additions to better accommodate growing households. In fact, these households reported some of the highest spending levels across all categories, averaging $43,330 spent in 2024.
When comparing generational groups, Baby Boomers represented the largest share of total remodeling expenditures. Meanwhile, Millennials are emerging as the highest spenders per remodeling household, often focusing on additions and long-term upgrades that support growing families, remote work, and evolving lifestyle needs.
The analysis also highlights life-cycle patterns that correlate with remodeling behavior. Home owners ages 35–44 and 55–64 reported the highest remodeling expenditures, suggesting two major waves of investment: one tied to family formation and another linked to pre-retirement and aging-in-place preparations.
Income remains another major factor shaping remodeling demand. Higher-income households (those with $200,000 or more in annual income) are three times as likely to renovate than those earning less than $50,000. On average, high-income households that remodeled in 2024 spent about $61,000.
