Press Releases

Today, the House Financial Services Committee, led by Chairman French Hill (AR-02), is holding a hearing entitled, "Building Capacity: Reducing Government Roadblocks to Housing Supply." This hearing will continue the Committee's examination of the factors and policies that have led to the lack of housing supply in America.

Read Chairman Hill's remarks as prepared for delivery.

"Good morning. Today’s hearing will explore the various factors contributing to the high cost of housing and examine the tools the federal government might wield to alleviate these burdens.

"Over the last decade, housing affordability has rapidly become one of the main issues facing American families, which has been primarily driven by a persistent lack of supply needed to meet growing demand.

"The delta between supply and demand has resulted in affordability challenges for many Americans looking to purchase a home.

"This Committee has held numerous hearings on critical aspects of this issue, including barriers to building middle-class housing, better utilization of modular and manufactured housing to meet urgent needs, and the unique housing challenges that rural America faces.

"Most recently, our Housing and Insurance Subcommittee held a hearing reviewing the urgent need to modernize the federal housing construction program, the HOME Program, to make it most effective and responsive to today’s market demands.

"Each of these discussions has highlighted a severe, decades-long shortfall in housing inventory that has hindered many Americans’ access to affordable homes.

"Our goal today is to chart a path toward greater development capacity and a simplified regulatory framework.

"Regulatory complexity, particularly those locally designed and approved rules, remains a significant obstacle for property owners and builders, complicating the development process and often resulting in delays and increased expenses.

"Rather than helping development, overburdensome building regulations have made it nearly impossible for many housing providers to navigate a maze of federal, state, and local rules, leading to less housing development across the nation.

"Likewise, home builders and hopeful home buyers are being crushed by the tailwinds of the 40-year high in inflation brought about $6 trillion in new spending by former President Biden and excessive laxity was the part of the Federal Reserve in late 2020-2021.

"This inflationary spike elevated costs per square foot, pushed down real incomes, contributed to higher insurance premiums and obviously higher interest rates as the Fed fought to overcome this error. Inflation is down 3.0% from its ugly peak of 9% in June 2022.

"In line with the Committee’s 'Make Community Banking Great Again' agenda, Committee Republicans have been working alongside the Trump administration to ensure community banks remain viable, competitive, and able to serve their local needs to combat rising housing costs. Greater capital, deposit funding, lower compliance costs mean greater credit availability.

"We are committed to finding new ways to foster a home building and buying environment conducive to supply growth and prudent lending practices.

"Our focus today is not about expanding government control. It’s about how our government can work to cut through the red tape that is stifling innovation and discouraging investment in housing projects.

"My Republican colleagues and I understand that the first step in creating a well-functioning housing market starts with streamlining regulatory processes and eliminating redundant layers of bureaucracy.

"By doing so, we can create a more predictable environment for builders, lenders, buyers, and renters.

"After we take in the feedback from today’s hearing, we plan to hold a markup later this month on a package of housing and banking reform solutions to our nation’s housing challenges.

"I thank our witnesses for being here today to provide their valuable insights and perspectives, and I yield back."