State leaders must prioritize need for adequate NJ housing

Real Estate Weekly,  Oct 31, 2007  by Dowling Guss

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Since 1884, the New Jersey Lumber Dealers Association has been dedicated to fighting for the building industry and for related legislation that is fair to all residents in the state.

In recent years, our membership has expressed concerns about the ongoing need for adequate and affordable housing in New Jersey. Local and state government have developed regulations that--while well-intentioned--have ultimately made home ownership a dream, rather than a reality, for many New Jerseyans.

To fight for all residents' ability to obtain quality housing in the state, our organization has made the difficult decision to change the name of our 123-year-old group--to the New Jersey Building Materials Dealers Association (NMDA).

Such a strategic decision will broaden the scope and services of our trade association, generating additional support in our industry for proposed legislation in Trenton that we believe will increase the supply of adequate housing. The expanded NJBMDA is inviting all buildhag materials suppliers in the state to come together as a strong, unified voice, committed to educating and advocating for the need for quality, environmentally-sensitive housing in New Jersey.

There is a chronic need for affordable housing in New Jersey for first-time home buyers, as these individuals are essential to our real estate market. Statistics show that the purchase of a first time home generates, on average, four other purchases from empty-nesters looking to downsize, to growing families looking to upsize, to others needing to relocate.

Affordable housing also makes it possible to keep our young and talented workforce in the state, where they can be trained to become tomorrow's leaders. These individuals--many of whom have paid upwards of $150,000 for a higher education--do not want to settle for small homes in New Jersey, funded via a 50-year mortgage. Nor do they want to work their entire lives and never have the money for a down payment and fund the American dream of home ownership.

They can do better elsewhere. Yet New Jersey can't afford to let them go. We need to call on our government to play a part. While many elected leaders may dismiss the slumping real estate market as an economic issue, they need to understand that government policy also plays a vital role.

Many of our lawmakers would be surprised to know that New Jersey's regulatory restraints--the highest in the nation--add an estimated 20 percent to the price of a new home. There are also ill-conceived policies, such as large-lot zoning, which factor in to the cost of a house and make it beyond the reach of many average New Jerseyans.

Energy efficiency also plays a role, as the large home sizes mandated by large lot zoning causes heating and cooling costs to spiral upward, adding to the overall financial burden of home ownership in New Jersey.

And I haven't even discussed property taxes.

Clearly, there is work to do. Just a quick look at migration statistics show we have lost nearly 200,000 New Jerseyans between 2000 and 2005. Many of whom fled the state in search of a more affordable lifestyle--readily available over the Delaware River.

To that end, the NJBMDA calls on the Corzine Administration and State Legislature to develop a rational, balanced approach to provide affordable housing for New Jersey's greatest asset: its workforce. Our Association stands ready to work with government, citizens groups and the construction supply industry to find the solutions that push New Jersey forward.

Since our inception during the Industrial Revolution, our association has steadfastly advocated for people throughout New Jersey to have equal access to housing and the ability to live where they choose. In today's times, our commitment is stronger than ever.

Our state lawmakers must gain a greater appreciation for the importance of affordable housing in New Jersey and recognize the plight of many. The priority of our state lawmakers must be to pass legislation that makes it easier for the state s growing population to have in quality homes, close to mass transit, to shopping and to good, solid jobs.

BY DAVID GUSS, PRESIDENT, NJ BUILDING

MATERIALS DEALERS ASSOCiATION

COPYRIGHT 2007 Hagedorn Publication
COPYRIGHT 2008 Gale, Cengage Learning