The emphasis on affordable housing would be positive for the remodeling industry. For starters, homeowners tend to spend a lot more money on home improvements than landlords do. Making homes “affordable” generally means lowering down payment requirements, but it also extends beyond the sale price of the home to smaller mortgage payments. That means more discretionary income for homeowners — money that is often spent on remodeling projects.
While the short-term benefits of increased affordable housing are obvious, the long run may prove to be even brighter. “Homeownership breeds homeownership,” Collier says. So even if people living in affordable housing are not yet in a financial position to undertake a major remodeling project, chances are that they soon will be. “Once they get to know the system, they’ll improve their income level and get into other housing stock,” Collier says. Research has shown a tendency to renovate within the first year of ownership, so that kind of turnover is good for the remodeling industry.
Energy. Rep. John Dingell (D-Mich.), the likely chair of the House Energy & Commerce Committee, has said that one of his missions would be to cut down on oil dependency in the U.S. A focus on energy efficiency, alternative power sources, and bio fuels should at the very least spark more awareness of these issues on the part of American homeowners, another boon for remodeling. “It would help propel the green building and green remodeling wave,” Collier says, as there would be a greater need for contractors to complete a variety of projects from simple insulation jobs or window replacements to more complex projects such as solar power installations.
The estate tax. Commonly referred to as the “death tax,” this controversial assessment — undergoing a gradual repeal through 2010 — will come back in full force in 2011 unless further legislation is passed. Opposed by the NAHB, opponents of the estate tax say it limits disposable income, while its supporters counter that its repeal will result in an increased tax burden for the American people as a whole. A repeal of the estate tax is unlikely with the new balance of power in Congress.
Call To Arms
Ultimately, the biggest impact of these mid-term elections may not play out on the national stage. Most of the legislative issues facing builders and remodelers are at a local level, and Winans, for one, is hopeful that the new balance in Washington will encourage his colleagues to get involved. “As there is less polarization, [politics] becomes a more attractive venue to become engaged in,” he says. “If there is no potential to be completely vilified, people might get more active on the local political scene.”