Bill Overview
Title: Housing Supply Expansion Act
Description: This bill modifies the federal prevailing wage rates that apply to federally assisted housing and requires the Department of Labor to review and revise its process for determining prevailing wage rates. Specifically, the bill applies the prevailing wage rate for residential construction to all housing projects that receive assistance under specified federal statutes. (Under current law, the residential construction prevailing wage rate applies to the construction, alteration, or repair of single-family homes or apartment buildings up to four floors in height.)
Sponsors: Rep. Van Duyne, Beth [R-TX-24]
Target Audience
Population: Individuals relying on federally assisted housing projects that will be affected by wage rate changes
Estimated Size: 30000000
- The bill affects housing projects that receive federal assistance.
- Prevailing wage rates for residential construction will be applied, which directly impacts contractors and construction workers.
- By modifying wage rates, the bill indirectly influences the housing sector by potentially altering costs for construction projects.
- Affordable housing projects, especially those receiving federal aid, will be directly influenced due to changes in labor costs.
- The Department of Labor's revision of the wage determination process could also affect future housing developments.
Reasoning
- Given the budget constraints and the scope of the policy, we should focus on individuals who are either directly involved in federally assisted housing projects or rely on affordable housing options
- To ensure diversity in perspectives, it's important to include a variety of roles and positions, from construction workers to policy analysts, as well as those living in different geographical areas with varying reliance on federal housing assistance.
- Including individuals who are not directly impacted ensures that we capture the broader socioeconomic implications and visible versus non-visible impacts over time.
- While the policy primarily affects those directly connected to the construction and housing sectors, it is also valuable to understand the perceptions of those in neighboring sectors such as community services and urban planning.
Simulated Interviews
Construction Worker (New York, NY)
Age: 36 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I am hopeful that increased wages will improve my living standard.
- Worried about potential job reductions due to increased project costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Federal Housing Project Manager (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- There will be management challenges, but with higher wages, projects can retain skilled workers.
- Balancing budget constraints with quality labor is a repeating issue.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Policy Analyst (Los Angeles, CA)
Age: 27 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- The policy is a step forward in increasing workers' rights and fair pay.
- Potential for increased housing costs is concerning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Retired (Detroit, MI)
Age: 62 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- I'm concerned about whether new housing will remain affordable.
- Higher construction costs might slow the building of needed housing options.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Nonprofit Director (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- Policies like this are crucial for fair wages, but we must also ensure housing remains accessible to all income levels.
- Collaboration with other organizations will be key to facing challenges from policy changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Civil Engineer (Chicago, IL)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 1/20
Statement of Opinion:
- A new prevailing wage rate will likely increase overall project costs.
- It might lead to innovative solutions to manage expenses effectively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 10 | 9 |
Construction Business Owner (Phoenix, AZ)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- New wage requirements could increase operational challenges.
- Potentially positive for retaining skilled labor, but financial pressures might reduce project feasibility.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 8 |
Real Estate Developer (Seattle, WA)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 1/20
Statement of Opinion:
- The impact on cost structures is significant, aligning with sustainable development needs is crucial.
- Adjusting to wage changes can lead to either delaying projects or looking into alternative materials and technologies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 10 | 9 |
Economist (San Francisco, CA)
Age: 33 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- The policy has complex economic implications, potentially affecting housing supply.
- Evaluating long-term impacts on affordability is crucial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 8 |
Housing Activist (Boston, MA)
Age: 58 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This policy is an opportunity to strengthen worker rights in housing sectors.
- Ensuring housing affordability alongside wage increases is a balancing act.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $80000000 (Low: $70000000, High: $90000000)
Year 2: $82000000 (Low: $72000000, High: $92000000)
Year 3: $84000000 (Low: $74000000, High: $94000000)
Year 5: $90000000 (Low: $80000000, High: $100000000)
Year 10: $100000000 (Low: $90000000, High: $110000000)
Year 100: $150000000 (Low: $130000000, High: $170000000)
Key Considerations
- The stability of housing markets and potential increases in project costs based on prevailing wage adjustments.
- The capacity of the Department of Labor to effectively manage and adapt the wage determination process over time.
- The trade-off between potentially higher construction quality and completion speed against increased project costs.