Hello REALTORS®,
In this Watchdog Report, I am pivoting to the national level by highlighting several your National Association of REALTORS® legislative initiatives.
NAR and our advocates at the state and local level have discussed these issues with our Members of Congress while they have been in South Carolina for their regular August break. We’ll continue to focus on these issues when they return to their districts in October to campaign for reelection.
NAR Rallies Against Rent Control Proposal
Last month, when President Biden announced a rent cap proposal, NAR immediately voiced its strong objection. NAR issued a statement and joined a coalition of housing-interest groups and issued a letter to President Biden opposing his rent control proposal.
Rent control is an instance where the research is conclusive: it doesn’t work. The only way to keep housing affordable for working-class families is to focus on housing supply, and rent control tends to be a disincentive to new housing supply. NAR continues to advocate for federal legislation and policies to help eliminate discriminatory land use policies and remove barriers to housing production.
In South Carolina, we are fortunate that our South Carolina REALTORS® Association has successfully advocated for and passed legislation that prohibits not only rent control, but also another housing price control measure that also doesn’t work: inclusionary zoning. State law prohibits local governments in our state from imposing both.
2024 NAR Legislative Priorities
NAR’s advocacy efforts focus on market-based approaches to solving our affordable housing crisis. These are some of those initiatives NAR is supporting in 2024:
- Revitalizing Downtowns and Main Streets Act, which incentivizes the conversion of commercial buildings into residential units by providing a temporary investment tax credit.
- VA Housing Loan Forever Act, which allows certain descendants of veterans to take advantage of their unused VA home loan benefit.
- Yes In My Backyard (YIMBY) Act, which encourages state and local governments to remove barriers to housing development.
- More Homes on the Market Act, which decreases the equity penalty and incentivizes more long-term owners to sell their homes.
These legislative initiatives are all designed to increase available housing inventory for home buyers. Inventory is critical to solving our affordable housing problem. According to NAR research, the U.S. is facing an underbuilding gap of 5.5 million housing units, translating to a $4.4 trillion underinvestment in housing, almost 20% of our nation’s gross domestic product for a year. The inventory problem hasn’t just created an affordable housing problem, it has created an economic problem.
To help make sure that you and your fellow Realtors can remain important to the real estate transaction, NAR also is promoting the Direct Seller and Real Estate Agent Harmonization Act to ensure real estate agents maintain their independent contractor status under the Fair Labor Standards Act.
FHA Changes 203(k) Rehabilitation Mortgage Insurance Program
Realtors also had an advocacy victory this summer. The Federal Housing Administration (FHA) recently announced changes to their 203(k) rehabilitation mortgage insurance program. NAR advocated for modernizing this program to ensure it keeps up with market trends and is more accessible and streamlined for home buyers. This change will enable more low- to moderate-income buyers to purchase homes in a broader range of the housing market while also revitalizing housing stock.
Did You Know?
Periodically, NAR shares with our Members of Congress information about the real estate market in their districts. You can read the most recent statistics for the State of South Carolina by clicking here.
I found these statistics particularly notable:
- Real estate is 14.7% of the state’s total gross domestic product (GDP), higher than the nation (13.5%).
- 10.4% of all jobs in South Carolina are in real estate and construction.
- The homeownership rate in South Carolina is 70.7%, higher than the nation (65.6%).
Support RPAC
You and your association can influence how your government affects you and regulates your industry.
Elections are an important way that your association represents you and helps make a strong market for real estate. Elections are also an important way that you participate in your government. Your association’s objective is to help elect pro-business candidates who share the Realtor position that a vibrant and healthy real estate market is vital to a vibrant and healthy economy. Of course, you must balance your personal and business interests when you vote.
You can help your industry by supporting RPAC. It’s easy. Your association includes a voluntary contribution to RPAC on your annual dues invoice. Pay it, and you are an RPAC supporter. If you haven’t supported RPAC this year, I encourage you to do so by clicking here.
Michael Dey, Director of Government Affairs
Watchdog