Policies That Increase Access to Homeownership

Policies formed and enforced at the local, state, and national levels have an outsized impact on the final cost of a new home. The National Association of Home Builders estimates that overly restrictive policies regarding land use, building materials, zoning, and environmental regulations make up almost a quarter of the cost of a new home. And, as policies become more stringent, home prices increase and more American families are priced out of the housing market. I’d like to share ideas from one U.S. county that encourage the development and adoption of reasonable policies that increase access to homeownership.

On a recent episode of NAHB’s podcast, Housing Developments, Washington County, Wis., county executive Josh Schoemann discussed his efforts to open up the market to more of his constituents. Podcast co-hosts NAHB CEO Jim Tobin and NAHB COO Paul Lopez spoke with Schoemann about his motivation to pursue unorthodox solutions for a universal problem and how his efforts are paying off.

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• Listen to and watch the NAHB podcast with Josh Shoemann
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Schoemann decided to pursue leadership in local government so he could give back to the community where he grew up. He then realized his passion for housing when, as county executive, he saw young people leaving Washington County to pursue opportunities elsewhere, and he wanted to find a way to encourage them to return and revitalize the community.

“The more research and study I did,” Schoemann says, “the more it became obvious to me that the first and biggest hurdle is housing. If [young people] can’t afford to live [in Washington County], they’re not coming back.”

The Next Generation of Housing Solutions

Realizing that housing was a baseline issue for the county’s long-term health, Schoemann set out to implement solutions and programs to increase housing opportunity. He often refers to the prosperity cycle in a community whereby the prosperity of families encourages businesses to prosper, which, in turn, helps build prosperous communities. One of Schoemann’s initiatives to ensure families prosper is the Next Generation Housing program, which helps home builders and developers create housing that’s affordable to first-time homebuyers.

Minimum lot sizes, permitting fees, and land costs have all eroded the viability of building starter homes. Schoemann’s Next Generation initiative seeks to alleviate the burden put on builders by bringing together a coalition of industry experts, zoning administrators, loan officers, real estate agents, and other housing leaders to deregulate residential construction with a focus on the greater good of the community. This coalition has been able to reduce development costs, provide zero-interest loans to developers, and still ensure that cash flow returns to the community when homes are purchased.

The Next Generation initiative seeks to alleviate the burden put on builders by bringing together a coalition of industry experts and other housing leaders to deregulate residential construction with a focus on the greater good of the community.

To address land costs, the group encourages the development of brownfields under tax increment financing (TIF), which typically requires the approval of the local governing body to be awarded. And there is also an approval process that, if successful, allows the county to cover the cost of building permits—sometimes up to 100%—on homes between $340,000 and $420,000, a price range aligned with the median income in the county.

More Affordable Housing for More Families

By gathering a group of people from many industries and walks of life to advocate on behalf of home builders and buyers as policy is developed, Washington County is able to provide more affordable housing for more families, enabling more families to stay in the county, enhancing community prosperity.

A major challenge Washington County has faced comes from NIMBY (not in my back yard) opposition. Across the country, when local governments and developers propose increased housing density or smaller lot sizes, many face backlash from those who think these more affordable initiatives will negatively affect property values. Schoemann recommends reminding vocal naysayers that today’s first-time homebuyers don’t have access to starter homes because the market doesn’t support their production. He has found the most success when addressing this in one-on-one interactions.

Looking ahead to working with the Trump administration, Schoemann noted that prioritizing deregulation and increased homeownership rates, which should help build generational wealth and more prosperous communities, will be beneficial in a top-down approach to some of the major issues facing the industry.

Similarly, NAHB anticipates a productive next few years, with builder confidence remaining steady at the end of 2024 and a sense of optimism for the coming year. Continuing to find new and creative solutions at the local and state levels will bolster efforts at the national level to create and codify a more friendly business environment for home builders.

To learn from more industry experts and thought leaders in residential construction, register for the International Builders’ Show with an education pass at buildersshow.com.

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