The Home Builders Association of Michigan (HBAM) has announced that they expect single-family, new home construction to rise by just 1 percent in 2018. Their econometric model estimates 16,918 new single-family home permits will be issued across Michigan.

“While homebuilders expect demand for new home construction to continue to grow, the industry is constrained by a lack of workers, limited lot availability and inconsistent development rules across the state,” said Bob Filka, HBAM’s CEO. “This, combined with anticipated oil price increases and North American Vehicle production decreases, resulted in our flat forecast for 2018.”

The likelihood that home production can rise much higher than 17,000 units will be virtually impossible without an influx of workers to the construction industry. Lynn Pratt, Southeast Michigan builder and incoming HBAM president for 2018, noted the industry is increasingly having to delay or turn away business in many regions of the state.

“Construction costs are rising, and with limited labor and other factors, many vitally important types of housing stock are not being built. This should concern local government and economic development officials who are seeing a growing scarcity of worker housing options in their communities,” Pratt said.

Following a series of housing summits held earlier this year in Michigan, HBAM issued a key report that warned of a looming housing shortage in Michigan. HBAM has proposed a 13-point action plan to aggressively attack the challenge.  The plan suggests efforts to train and attract individuals to the skilled trades must dramatically increase over the long term, and that state authority to interpret and enforce code and land development laws must be clear and unwavering.

Copies of “Housing Challenges Threaten Economic Growth: Where Will Ten Million Michiganders Live,” can be downloaded at



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