There is one important element missing from the landmark economic stimulus package now being assembled on Capitol Hill.

Little attention has been given to solving the devastating impact of the housing downturn, which is the root cause of the financial crisis that continues to escalate at an alarming rate.

Over the past couple of years, more than 3 million jobs in construction and related fields have been lost, $3.5 trillion of home equity has evaporated, and home sales and production have plunged to record lows.

The collapse of the housing market eventually resulted in the financial meltdown and credit crunch we saw last fall and now has spilled over into the general economy with devastating results.

Congress must fix the underlying problem in order to put the economy back on the path to growth and prosperity.

At the same time as our lawmakers work to reduce mortgage foreclosures, they must provide incentives that will bring home buyers back into the marketplace.

Providing a home-buyer tax credit that could be applied toward a down payment would do the job.

Based on local housing prices, the credit would range significantly higher than the $7,500 currently available for first-time purchases; it would go to all home buyers, with income limitations; and it would not need to be repaid.

The credit would be available only until the end of this year, sending a strong signal to families who have been sitting on the fence that they need to act quickly to take advantage of this opportunity.

America’s consumers and lenders won’t regain the confidence our economy so desperately needs until they see an end to the downward spiral in housing values. As history shows, housing is the sector that leads the economy out of recession.

Congress must make meaningful provisions in the stimulus legislation that will enable housing to return to that role as quickly as possible.

Dan Petry

Trademark Builders

President, Homebuilders Association of Midwest Georgia

Fayetteville, Ga.