Ask a group of people what they think of when they hear “American Dream,” and homeownership is likely to come up. But in that same conversation, you will also likely hear that that part of the American Dream is increasingly out of reach. Many Americans have simply been priced out of the housing market, and the average age of first-time homebuyers is now 40 years old.
The Senate recently took action to advance the 21st Century ROAD to Housing Act, a bill that tackles some of the causes of the higher prices that are preventing too many Americans from realizing the dream of homeownership. That starts with getting rid of unnecessary red tape.
Regulations contribute as much as 25 percent of the cost of building a new single-family home, which contributes quite a bit to the price that families eventually pay for that home. So this bill cuts burdensome regulations that slow down the building process and streamlines processes so homes can get built faster and for less money. And since federal regulations are only one of the challenges builders have to overcome, this bill also encourages local governments to reform zoning laws to encourage building.
Lifting these burdens will do a lot to bring down housing costs, but we’ve also set out to support financing the purchase of a new home. The 21st Century ROAD to Housing Act tailors regulations for smaller and new financial institutions, and it lifts regulatory burdens on community banks and credit unions so these local lenders can be focused on people rather than paperwork.
The ROAD to Housing bill is just the latest item on Congress’ agenda to bring the dream of homeownership within reach for more Americans. Earlier this year, President Trump signed a bill I authored with Senator Rounds and Congressman Johnson that expedites the review and processing of mortgages across Indian Country to encourage homeownership on tribal land.
Then there are the actions Republicans took last year in the Working Families Tax Cuts. As a result of this law, hardworking South Dakotans are benefiting from larger paychecks and bigger tax refunds, allowing families to save some of that money for a down payment on a new home. Other provisions like immediate 100 percent expensing for investments make it easier for builders to increase the supply of affordable homes.
Getting the keys to a place that is all your own; that’s a big part of the American Dream. With these bills, Republicans are working to open the door to affordable homes for hardworking Americans and ensure that the next generation can live their dream in a home of their own.