Home Builders Association Addresses Housing Challenges
The Home Builders Association of Michigan (HBA) has been promoting the building industry and working to increase housing affordability since 1948. The Association recently developed a report that includes recommendations on how to correct current challenges within the housing industry that are believed to be holding back economic growth in Michigan.
On June 6, HBA held a press conference to discuss the recently developed report and their recommendations for change. Bob Filka, CEO of HBA, spoke largely about the current problems with developing single-family homes.
Currently, homes are not being built due to the carrying costs of labor and expensive materials. For lower to middle-level income homes, these costs equal the cost that builders sell homes for. One way HBA hopes to cut down on these costs is create a 14-day response time for estimates and questions to legislature. Home builders often have quick inquiries to evaluate labor and material costs, but the legislature does not respond in an adequate amount of time. The 14-day response time would cut down on costs and make home construction a more feasible option.
In 2005, at the peak of the home-building industry, HBA reported the industry generated $10 billion in income and created over 150,000 jobs in Michigan. Today, the industry does not generate even half that amount of income or jobs. One major problem is the lack of individuals pursuing careers in skilled trades, and HBA believe there needs to be a stronger effort in promoting skilled trades and developing training programs and are willing to work to support this change as well.
With both the report and recommendations in place, HBA hopes to effectively impact legislature, improve economic growth and the increase the affordability of building homes, believing many issues with current laws and the legislature are easily correctable. To learn more about the HBA’s report and recommendations, visit their website www.buildingmichigan.org.
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