Housing, Policy, and the Fight for Affordability with Jim Tobin

Jim Tobin never planned on 27 years at the National Association of Home Builders. He wanted to fly helicopters. Politics caught his attention, landing him on Capitol Hill in 1995. Instead of becoming a defense lobbyist, he found NAHB and an industry that builds shelter and creates wealth.

As President and CEO, Jim visits local chapters in San Antonio, Shawnee, and Iowa, sitting with builders doing five homes a year.

"I can't do my job here in Washington if I don't hear what's going on in all those different markets. The builders are all facing the same issues."

Interest rates haven't dropped enough. The building year is down 7 percent. Everyone says they want more housing, but policies don't align with affordability.

The FHA energy code issue: The Biden administration mandated homes sold to FHA borrowers meet the 2021 International Energy Conservation Code. Only five or six states were on that code. Cost? Between 20,000 and 30,000 dollars per home extra.

"It's an unforced error. They chose to believe it would be better to save people 10 dollars a month on their energy bill, but it's okay to pay 20,000 dollars more for the cost of that house."

FHA borrowers are first-time buyers. When they can't afford the new home, they buy an older, less efficient one.

There are 900,000 new homes being built this year, already the most energy efficient. But there are 130 million older homes, most built before 2000.

"Stop trying to wring the neck of 900,000 homes and solve the problem of 130 million homes."

Local governments add impact fees to new construction because there isn't a voter in that house yet.

"It's a lot easier to go tax new construction through impact fees, permitting fees, extractions, because there isn't a voter in that house yet."

A million kids live with parents because they can't find affordable housing.

"Home ownership is the gateway to the middle class, and we are pushing it farther away from the next generation. The housing crisis has catastrophic downstream effects we have not felt yet."

On what builders need from Capitol Hill:

"Get out of our way. Stop putting roadblocks in front of us. All we want is to be left alone to do what we do better than anybody else. And that's build shelter in this country."

On workforce: Since the 1970s, America emphasized the four-year degree. The trades became undervalued. Now there's a shortage of skilled workers.

"Learn a trade, get hired, you're making a good buck. After a few years, you start your own company. Now you're tomorrow's entrepreneur. You've got four or five trucks out on the road doing good work. That's the arc of what trades can give you."

The International Builder Show in Orlando features this year's New American Home. The builder is matching every product donation to build housing for people with autism, including his son.

On lobbying:

"I give voice to those who cannot, and I carry a message for people who cannot, and that is protected by the Constitution. You may not like what I'm selling, but I absolutely despise your questioning my right to do it."

The builders are ready. The question is whether policy can catch up.

Jim Tobin, CAE, president and chief executive officer of the National Association of Home Builders (NAHB), has more than 20 years of association experience and a diverse housing policy background.

Tobin’s tenure at NAHB began in 1998 as a Congressional representative for the western United States, and he quickly broadened his policy expertise to the environmental and tax policy arenas. Most recently, Tobin served at the association’s executive vice president and chief lobbyist, responsible for directing the federal, state and local lobbying, as well as political activities for NAHB. He was promoted to president and CEO in June 2023.

Prior to joining NAHB, Tobin served as senior legislative assistant to former U.S. Representative Frank Riggs (Calif.) and former U.S. Representative Gary Franks (Conn.).

Tobin holds a Bachelor of Arts in political science from the University of Connecticut. He lives in Falls Church, Va., with his wife and their two children.

NAHB Blog:
https://www.nahb.org/blog

NAHB Podcast:
   • Housing Developments Podcast  

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Chapters:
00:00 Introduction
02:33 Early Aspirations and Career Beginnings
03:32 Politics and Lobbying
08:52 National Association of Home Builders
16:55 Challenges in the Housing Market
28:24 Future of Home Ownership
34:33 Double Whammy of Housing Fees
36:43 Leadership Challenges and Clarity
40:37 Value of Trade Associations
44:15 International Builder Show
50:57 Trades and Workforce Development
01:01:25 Importance of Lobbying