Home Builders Fire Back at Peter Schiff

Trade group CEO says foreclosures--not housing production--are responsible for the inventory glut.

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Jerry Howard, the president and CEO of the National Association of Home Builders, sent me the following response to The Home Front's recent interview with Peter Schiff.

Very few people would be able to afford a home if the government ever adopted “notorious bear” Peter Schiff’s laissez-faire policies on the housing crisis [“ Peter Schiff: Let the Housing Market Crash”] because most workers probably wouldn’t have a job. The confidence of consumers and the financial markets has been rocked hard enough by declining housing values. A further erosion in home prices would take an even greater toll on household worth, accelerate foreclosures and put the banks on even shakier ground than they are on today. It is worth noting that in the weakest housing markets, the going price for a typical home has sunk below its replacement costs. The current oversupply of housing is a direct result of rampant foreclosures, not housing production, which has slumped to a record low pace. Pulling the plug on an industry that in healthier times can be counted on to provide 15% of the gross national product is a prescription for a total economic meltdown. Mr. Schiff, apparently, wants to bring it on.

Jerry Howard

President and CEO

National Association of Home Builders

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