Barr discusses new housing law, affordability during Bowling Green meeting

BOWLING GREEN, Ky. — Housing affordability and the need for more construction were the focus Tuesday as Republican U.S. Senate candidate Andy Barr met with members of the Builders Association of South Central Kentucky.

Barr discussed the 21st Century ROAD to Housing Act, a bipartisan housing package that became law in July. The law includes provisions aimed at increasing the housing supply, streamlining some federal processes and permitting, expanding financing opportunities and reducing barriers to construction.

Barr said the housing shortage is especially important in south-central Kentucky because of the region’s rapid growth.

“There is no other part of the Commonwealth, Kentucky, where the need is more acute than south central Kentucky,” Barr said.

Barr said the country needs more single-family homes, condominiums, duplexes and rental housing. He cited a Congressional Research Service estimate that the nation’s housing shortage could be as many as 5.5 million units.

Barr also cited Federal Reserve data, saying median home prices increased nearly 40% from 2020 to 2022.

“The fundamental problem is really not that complicated,” Barr said. “America needs more housing.”

Barr said rising construction costs, regulatory delays and what he described as unnecessary red tape have contributed to the shortage.

He said the new law addresses some of those issues by streamlining environmental reviews for certain smaller and infill housing projects, allowing communities to develop pre-approved housing designs and modernizing rules surrounding manufactured and modular housing.

Barr also highlighted provisions involving community banks and other financial institutions that provide financing for construction and mortgages.

“Community financial institutions are the ones with a personal relationship with the borrower,” Barr said. “Those small hometown banks are the institutions that we’re trying to help in this legislation.”

Barr said improving access to mortgage credit could help first-time homebuyers move from renting to owning.

He said the law also makes it easier to build and deliver manufactured and modular housing and reduces some red tape involving zoning and planning.

“That extra supply is what is going to reduce the cost for those first-time homebuyers,” Barr said.

Warren County Judge-Executive Doug Gorman said the region’s growth makes both single-family and multifamily housing important.

Gorman said multifamily housing can provide an important first step for families working toward homeownership.

“People that own their own homes, that is a chance for them to have generational wealth,” Gorman said. “We have to have multifamily. That’s important for that first step for a lot of families.”

Barr also addressed criticism of the legislation from Republican U.S. Sen. Rand Paul of Kentucky, one of five senators who voted against the final bill.

Paul has raised concerns about provisions restricting large institutional investors from purchasing additional single-family homes.

Barr said he shares some of Paul’s concerns but ultimately believes the legislation will increase housing supply.

“I actually share Senator Paul’s concerns in some regard,” Barr said. “But I think we need more supply, not less supply.”

Barr said lawmakers had to compromise to get the legislation passed and argued that the final law removes more government barriers than it creates.

“I think we got government out of the way more than we put government in between investors and homeowners,” Barr said.

Barr also cited Federal Reserve data, saying the average homeowner has a net worth more than 40 times that of the average renter. He said homeownership allows families to build equity and accumulate wealth.

“There’s nothing wrong with renting,” Barr said. “We need renters. We need more multifamily. We need more workforce housing for those renting families. But we want to make it easier for those families to transition into homeownership.”

Barr said the new housing law is part of a larger effort to address affordability and increase the supply of homes.

He said more work remains, including efforts to expand access to mortgage credit, reduce construction costs and support community banks.

Barr is seeking the Republican nomination for U.S. Senate and currently represents Kentucky’s 6th Congressional District in the U.S. House.