'Supply And Demand': Chris Van Hollen Warns Tariffs On Canada And Mexico Will Drive Up Housing Costs

2 days ago

During a Senate Banking Committee hearing on Wednesday, Sen. Chris Van Hollen (D-MD) spoke about President Trump's tariffs on Canada and Mexico.

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Transcript

00:00Testimony, let me just start on the supply issue and I've been listening in on c-span and clearly constrained supply

00:07Drives up costs right? You're an economist. Dr. Glazer, right?

00:12but but the reason we're worried about constrained supply is

00:16Because with the with demand not being met it drives up costs. That's the fundamental question, right? So

00:24There's another side to the cost factor and that is the cost of materials

00:30right, and so I just want to read to

00:33Everybody a letter that we all received from the National Association of Home Builders very recently

00:39And I'm quoting while home building is inherently domestic builders rely on components produced abroad with Canada and Mexico

00:46representing nearly 25% of building materials imports

00:51Imposing additional tariffs on these imports will lead to higher material costs

00:55Which will ultimately be passed on to homebuyers in the form of increased housing prices unquote

01:01That's a pretty state simple statement of supply and demand. Is it not doctor?

01:07So, you know I when when we hear the president, you know talking about beautiful tariffs

01:14I think the American people need to understand what he's talking about if applied in a broad-based way

01:20Mean higher housing costs, isn't that right?

01:23Doctor

01:24It is hard to see how

01:27Imposing higher higher costs on materials coming from outsider is going to lower costs for housing. That is that is certainly true senator

01:33well, let me let me give you the estimate from the chief economist over at the

01:37National Association of Home Builders Robert Dietz. He estimates the tariffs once fully phased in will add anywhere from

01:46$7,500 to $10,000 to the cost of building the average American family home. Do you have any reason to dispute that?

01:53Well, it is true that he represents an industry group and industry groups are known to talk about

01:58Policies in a way that that gets the policy objective that they want

02:01But no, I have no particular evidence on the home building technology that would lead me to dispute dispute that number. Thank you

02:07As well as I want to turn a little bit to the other part of the equation

02:11And that is you know, trying to help families that can't afford a home

02:16some additional means to be able to do that and

02:20In your testimony you talk about quote the immediate threat facing HUD as a result of the actions being taken

02:28by

02:29Elon Musk and the Doge

02:32Group, I must say that I find it kind of sickening that the richest man in the world

02:40Who just a few years ago sold like seven mansions is trying to deny

02:46Working people access to programs that at least to some extent increase affordability

02:51Could you talk about the damage that would be done if the threatened cuts go forward?

02:57Absolutely senator and also to just you know

02:59just

03:00Thinking about you you're talking about the richest man in the world and I want to talk about the HUD programs and who they're meant

03:06For because when we're talking about Eli extremely low-income households

03:11You know, we did a study and we have a study that's called out of reach and so

03:17$32.11 is what a person needs to make in order to afford a modest two-bedroom unit

03:26$26.74 is what a person would need to make to afford a modest one-bedroom unit as we know the federal

03:35The federal

03:38The wage

03:39Is seven dollars and twenty five cents

03:42And so many people will have to work 2.8 jobs or more in order to afford affordable housing

03:49HUD provides affordable housing and stability to people

03:53You know who need it across this country

03:56At least one out of four people who need it across this country again

04:00That means three out of four don't receive it. So when we're talking about the the cuts to HUD we're talking about

04:07in one

04:09program the program that

04:11oversees

04:12the field offices

04:14we're talking about a 50% cut a 50% cut in staff to

04:19The program that oversees public housing in Indian Affairs. We're talking about an 84% cut to

04:25the the office that oversees

04:29CDBG

04:30block grants

04:32At the housing trust fund you name it so

04:36we're talking about an 84% cut there and a 76% cut to

04:41the program that does the research so that

04:45Figures out the market rates and the rents that are to be paid to landlords

04:50So how can these programs function if you're cutting these programs?

04:55And and again, it's a significant cut throughout HUD

04:59the field offices they see

05:02People on the front line that are coming to them to access HUD programs

05:06And I don't see how you can function as an organization with those kinds of significant cuts

05:14Thank you. And just in closing, I don't have any more questions

05:17I just want to thank you for supporting in your testimony the bipartisan legislation

05:21I've introduced with Senator Young entitled to Family Stability and Opportunity Vouchers Act a proven approach to helping

05:28Lift families out of the cycle of poverty. Thank you

'Supply And Demand': Chris Van Hollen Warns Tariffs On Canada And Mexico Will Drive Up Housing Costs

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