How They’ll Bolster the Economy for Wall and Ceiling Contractors
The two presidential candidates have markedly divergent plans to pump up the economy during the next four years, make it much easier for wall and ceiling contractors and other construction industry players to make more money—and make it much easier consumers to grab the homes they want.
Both presidential candidates have rolled out new economic visions for the country that promise to make life much easier for wall and ceiling contractors during the next four years.
But the open question, as usual, is if those grand plans can be forged into legislation by a locked-horns Congress that often finds itself trapped in a state of inertia.
Either way, seasoned political players in the construction industry such as Jim Tobin, CEO, National Association of Home Builders (NAHB), believe the best move is to remain open to the plans of both political parties—and project an image that the construction industry is happy to work with both sides of the aisle after the presidential election is decided.
“As we’ve always said, if you want enduring housing policy, it’s best done in a bipartisan fashion,” Tobin says.
Interestingly, the two presidential candidates have markedly divergent plans to pump up the economy during the next four years, make it much easier for wall and ceiling contractors and other construction industry players to make more money—and make it much easier consumers to grab the homes they want.
Democrat Kamala Harris, for example, is floating a number of economic tactics specifically designed to spur home building—while throwing much more work to wall and ceiling contractors (www.youtube.com/watch?v=GAa5ltdv_44).
In stark contrast, Republican Donald Trump is pushing a macro-fix for the entire economy designed to ideally accomplish the same end (www.youtube.com/watch?v=ekGoeX5AW4w).
Among the most head-turning of Harris’ proposals is a plan to offer $25,000 in down payment assistance—along with a $10,000 tax credit—to as many as 400,000 first-time home buyers during the next four years.
“As president, I will be laser-focused on creating opportunities for the middle class that advance their economic security, stability and dignity,” Harris said in an August speech in which she detailed her plan for stimulating the housing industry.
“Together, we will build what I call an ‘opportunity economy’—an economy where everyone can compete and have a real chance to succeed,” she added.
Plus, Harris will also be looking to repurpose some federal lands—currently devoid of housing development—for affordable housing development, according to information released by Harris’ press team (https://mailchi.mp/press.kamalaharris.com/vice-president-harris-lays-out-agenda-to-lower-costs-for-american-families).
Still other tactics Harris is looking to leverage to help trigger the construction of affordable housing, according to her press team:
Developer Tax Incentive for Building Starter Homes: Harris is looking to establish a tax credit for developers who design and build starter homes that are ultimately sold to first-time home buyers.
This credit would complement the Neighborhood Homes Tax Credit, which encourages investment in homes that would otherwise be too costly or difficult to develop or rehabilitate.
$40 Billion Innovation Fund: Harris plans to push for the creation of this fund, which would reward local governments that find local solutions to affordable housing problems.
The fund would also be used to support innovative methods of construction financing, as well as empower developers and homebuilders to design and build rental and housing solutions that are affordable.
The catch: Developers and homebuilders looking to benefit from the fund would need to prove to the federal government that they actually came up with affordable deliverables.
War on Red Tape: Music to the ears of any wall and ceiling contractor, Harris is also promising to cut the government red tape that’s getting in the way of new home construction.
Specific promises here include streamlining the permitting and review process.
Block on Wall Street’s Bulk Buying—and Mark-Ups—of Homes: Well aware of the growing practice of homes that are purchased in bulk—and then marked-up in price—by Wall Street investors and distant landlords, Harris will be looking to end the practice as president by getting behind the Stop Predatory Investing Act.
War on Price Fixing: As many renters know all too well, a number of corporate landlords are using private equity-backed price-setting tools to collude with each other and dramatically jack-up rents in communities across the country.
Harris has vowed to work with Congress to crack down on companies artificially inflating rent with these tools by getting behind the Preventing the Algorithmic Facilitation of Rental Housing Cartels Act.
Harris’ over-arching goal with the implementation of all these tactics is to trigger the construction of three million more homes than would ordinarily be built by the construction industry during her first four years in office.
“By the end of my first term, we will end America’s housing shortage by building three million new homes and rentals that are affordable for the middle class,” Harris said. “And we will make sure those homes actually go to working- and middle-class Americans—not just investors.”
So far, construction industry reaction to Harris’ plans has been mixed.
Carl Harris, chair, NAHB, likes the idea of Harris’ tax credits. But he’s looking for much more from the Democrats when it comes to regulation relief. “A tax credit to help builders construct more entry-level housing and expanding and strengthening the Low-Income Housing Tax Credit will help builders to construct badly needed new homes and apartments.”
“Unfortunately, the plan makes no mention of reducing onerous federal regulations that add to the 24% cost burden on single-family home construction or the almost 41% increase on the construction of a multifamily unit.”
“Further, on the heels of President Biden’s rent cap proposal, NAHB is concerned that efforts to target institutional investors will harm the growing single-family, built-for-rent market, specifically those homes built for the rental market, further disincentivizing housing production that is otherwise desperately needed.”
Adds Robert Dietz, chief economist, NAHB: “On regulatory policy, the watchword should be ‘Do no harm’—try to find a way to cut back or roll back housing regulations that add cost.”
More impressed with the Democrats’ economic plan is David M. Dworkin, CEO, National Housing Conference. Dworkin has tracked the records of Harris—and her vice-presidential running mate, Tim Walz—for years and insists the two are the real deal when it comes to getting things done when it comes to affordable housing.
Says Dworkin: “Taken together, the two candidates can rightfully be called the first presidential ticket led by two bonafide housing advocates. Their plan is detailed, serious, and impactful—with many elements boasting bipartisan support.”
Meanwhile, the future’s view from the other side of the political spectrum sees wall and ceiling contractors benefiting from a second Trump term as well if the former president succeeds in completely re-engineering the economy so that it’s incredibly business friendly.
Key to Trump’s plan—which he talked about in detail at a speech he gave in September—is the creation of a deep-pocketed, Sovereign Wealth Fund, which would be used to bankroll major infrastructure projects like airports and highways.
“We’ll create America’s own sovereign wealth fund to invest in great national endeavors for the benefit of all of the American people,” Trump said. “Why don’t we have a wealth fund? Other countries have wealth funds.”
Adds Trump: It “will be used to do things that will be great for our country, including to wisely invest and build it up bigger and stronger and better than any place on Earth.”
“We will build extraordinary national development projects and everything from highways to airports and to transportation, infrastructure—all of the future.” “We’ll be able to invest in state-of-the-art manufacturing hubs, advanced defense capabilities, cutting-edge medical research,” Trump said.
Trump is also promising to cut energy prices by 50% during his first year in office by activating his presidential emergency powers to ram-through major changes to U.S. energy policy.
Says Jack Schneider, director, rapid response, Republican National Committee: “President Trump will immediately issue a national emergency declaration to achieve a massive increase in domestic energy supply.”
Adds Trump: “It will be an economic revival of our country like no one has ever seen before.
“Energy was what caused our problem initially. Energy is going to bring us back. That means we’re going down and getting gasoline below $2 a gallon, bring down the price of everything from electricity rates to groceries, airfares, and housing costs.”
“We will blast through every bureaucratic hurdle to issue rapid approvals for new drilling, new pipelines, new refineries, new power plants, new electric plants and reactors of all types.”
“Prices will fall immediately in anticipation of this tremendous supply that we can create rather quickly—and we’ll be the leader instead of the laggard.”
Like Harris, Trump also is promising to wage a war on bureaucratic red tape. Said Trump: “I will launch a historic campaign to liberate our economy from crippling regulation.”
“I’m pledging today that in my second term, we will eliminate a minimum of 10 old regulations for every one new regulation. We’ll be able to do that quite easily, actually.”
Plus, Trump plans to create a Government Efficiency Commission—headed by none other than innovative inventor and one of the world’s richest men, Elon Musk. The commission’s goal: To further rid the federal government of wasteful spending.
Said Trump: “I will create a Government Efficiency Commission tasked with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms. We need to do it. Can’t go on the way we are now.”
Still more promises from Trump come in the form of major tax cuts. “The fifth pillar of my plan is to make the Trump tax cuts permanent. They are massive tax cuts, biggest ever, permanent. And we will have no tax on tips, something which they (the Democrats) copied four weeks after I said it.”
Also, on the tax chopping block: Taxes on Social Security. Said Trump: “People on Social Security have been wiped out by inflation. And now, on top of it, we tax their benefits.”
“We’re not going to tax their benefits. We have so many different ways of making so much money. This country, the potential is so incredible. We don’t have to take it away from people on Social Security. We’re not going to do that. We’re going to save Social Security.”
Trump also plans to build up the federal treasury with more tariffs aimed at foreign countries that he believes are taking advantage of the United States’ overly liberal trading policies, saying that “Foreign nations will pay us hundreds of billions of dollars, reducing the deficit and driving inflation down. It will largely reduce our deficit.”
Bottom line: For wall and ceiling contractors, the upshot of all these macro economic changes will be an incredibly business-friendly environment, which will make it much easier for those in the building trades to build—and for consumers to buy, Trump indicates.
“As inflation is tamed, interest rates will dramatically fall,” said Trump. “They’ll be down very, very low. We’ll get them down. We’re going to get them back down to 2.4% and even lower than that for a period of time.”
“Reducing mortgage rates is a big factor. We’re going to get them back down to, we think, 3%—maybe even lower than that, saving the average homebuyer thousands of dollars per year.
“Young people will be able to buy a home again and be a part of the American Dream. We will eliminate regulations that drive up housing costs with the goal of cutting the cost of a new home in half. We think we can do that. The regulations alone cost 30%. Regulation costs 30% of a new home.”
And we will open up portions of federal land for large-scale housing construction. These zones will be ultra-low tax and ultra-low regulation. One of the great, really small-business job creation programs it will be of all time.”
Overall, NAHB’s Tobin says he likes what he’s heard so far from Trump.
But he yearns for more specifics. Says Tobin: “He’s talked about lowering regulations. He’s talked about opening up federal lands. He’s also talked about a robust economy that would lift all boats.
“(But), I’d like to see more meat on the bone from the former President.”
For others, such as Jodey Arrington (R, TX), chair, U.S. House Budget Committee, Trump’s emphasis on tax-cutting during the next four years, as well as his previous record for making good on promises to cut taxes, is in-and-of-itself a prescription to ensure the economy is bolstered to new heights during the next four years.
Says Arrington: “The truth is, the Trump tax cuts (during Trump’s first term) resulted in economic growth that was a full percentage point above CBO’s (Congressional Budget Office’s) forecast. And federal revenues far outpaced the agency’s predictions.”
“In fact, under Trump tax policies in 2022, tax revenues reached a record high of nearly $5 trillion and revenues averaged $205 billion above CBO predictions for the four years following implementation of the law.”
“Beyond what the Trump tax cuts did for economic growth and federal revenues, it provided major benefits to working families. The officially reported poverty level fell to its lowest rate in 50 years. And unemployment rates for minorities and those without a college degree hit all-time lows.”
“Real median household income rose by $5,000. And wages went up by nearly 5%. Americans earning under $100,000 saw an average tax cut of 16%. And while the tax burden on low-income families went down, the top 1% saw their share of federal taxes go up.”
Chances are, the party faithful—after listening to the competing visions from Democrats and Republicans—will most likely gravitate to their respective party heroes, no matter what the specifics of their heroes’ economic plans.
But one thing is for certain: There are high hopes all around.
Joe Dysart is an internet speaker and business consultant based in Manhattan, New York.
isclaimer: The information, quotes, and ideas and opinions in this article are those of the quoted official with cited sources and/or those of the interviewee. AWCI does not endorse specific political parties.
