LANSING — The Home Builders Association of Michigan is forecasting that single-family home construction in 2013 will increase by 39 percent over 2012 levels. The association attributes the positive forecast to a stronger Michigan economy and state legislation aimed at stimulating the housing industry.
“With record low new home production for the past several years, pent up demand is finally beginning to burst through in the marketplace,” said Robert Filka, CEO of HBA Michigan. “When combined with positive tax and regulatory changes that will encourage more investment, our outlook is more optimistic than it’s been in nearly a decade.”
The number of single-family home permits recorded year-to-date in Michigan was up 36 percent through the end of October 2012. Those are the latest numbers available from the U.S. Census Bureau. Current projections are for some 10,000 single-family home permits to be issued in Michigan for all of 2012.
Looking ahead at single-family home permits in 2013 HBA Michigan forecasts 13,928 permits to be issued in the coming year. In addition to stronger economic factors, Filka said the housing industry will be assisted next year by a new law adopted by the state legislature and recently signed by Gov. Rick Snyder. Public Act 494 of 2012 reduces the tax on new inventory homes that are constructed by homebuilders.
“Reducing this punitive tax on inventory homes will lower risk and encourage homebuilders to construct more homes in the future,” said Filka. “Building inventory homes is a critical marketing tool that has proven successful in generating new home sales. Thanks to the foresight of the legislature and the Governor, homebuilders will now be able to invest more in our communities around the state.”