State of Residential Construction - Home Builders Association of Michigan

Summary

A slide presentation titled State of Residential Construction from the Home Builders Association of Michigan. It describes the association as having 16 local HBAs and 4500 members and states that Michigan is in a housing crisis, listing single family permits of 54,000 in 2005, 15,137 in 2024 (preliminary) and a 2025 forecast of 15,728. It names supply and demand, materials, labor and regulations as issues affecting construction costs and gives an age breakdown of licensed Michigan builders in 2025 with a median age of 58, alongside a count of 58,011 Michigan license holders. It reports regulatory costs of $93,870 per home, a 2025 median new home cost of $430,566 and qualifying income of $137,934, and says 3,393 households are priced out for every $1,000.00 increase. The presentation asks policymakers to weigh the housing impact of legislation or rules.

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Full text

STATE OF RESIDENTIAL
CONSTRUCTION

HOME BUILDERS ASSOCIATION
OF MICHIGAN

Mi] The HBA of Michigan works positively to promote the building industry and
impact legislative, regulatory and legal issues affecting housing affordability
(attainability).

MM! Quick Facts:
¢ 16 local HBAs
¢ 4500 members comprised of builder and associate members

¢ Our members are licensed AND insured
* Celebrated our 75** Anniversary in 2024
HOME BUILDERS ASSOCIATION

Michigan is in a Housing Crisis

OF MICHIGAN

Single family permits:

Ml Quick Stats:
2005 ~ 54,000 SFP pulled

We need 144,000 2007 ~ 15,000 SFP pulled
total units today 2009 ~ 6,900 SFP pulled
2024 - 15,137 SFP pulled (Preliminary Number)
2025 - 15,728 SFP (HBAM Forecast)
January 2025 - 853 SFP pulled
February 2025 - 910 SFP pulled (1,770 YTD)
HOME BUILDERS ASSOCIATION

OF MICHIGAN

3 Issues Impacting the Cost of Residential Construction —- Supply v Demand

mi Materials

Mil Labor

Mil Regulations — Local, State and Federal

Total Licensed Michigan Builders in 2025

HOME BUILDERS ASSOCIATION

OF MICHIGAN

AGE RANGE NUMBER OF BUILDERS IN
18-25 AG9
26-34 1,920
35-45 6,841
46-55 9 390
56-65 12,394
66+ 11,192

Average Age: 56.42 Median Age: 58

Michigan License Holders: 58,011
HOME BUILDERS ASSOCIATION

Skilled to Build Michigan Foundation

OF MICHIGAN

SkilledT oBuild

MICHIGAN FOUNDATION

MISSION: To Cultivate, Educate and Recruit into
the residential housing workforce

We are a recognized certification in the Career and Technical Education division of MDE.
MB) We have credentialed a total of 420 students in the last three years.

Mi] = We have grown our program from 9 construction trade programs participating to 26
construction trade programs participating in the certification program.
y N

HOME BUILDERS ASSOCIATION
OF MICHIGAN

State of Housing

REGULATORY COSTS $93,870 PER HOME

(11% Gain 2016 to 2021)

Cost of applying for zoning approval $6,473

During development:

$41,330

Hard costs of compliance (fees, required studies, etc.) $11,791

Land dedicated to the govt. or otherwise left unbuilt $10,854

Standards (setbacks, etc.) that go beyond the ordinary $8,992

Pure cost of delay
during development

$1,442

During
construction:

$52,540

Source: NAHB/Wells Fargo Housing Market Index (HMI)
State of Housing

The median cost of a new The income needed to
home in MI in 2025 is qualify in 2025 is

$430,566 $137,934

IN 2024 In 2024

$448,520 $143,593
HOME BUILDERS ASSOCIATION

State of Housing

OF MICHIGAN

Michigan Households (in Thousands) by Highest Priced Home They
Can Afford Based on Income: 2025

3,393 households are priced out
Ts of the market for every $1,000.00
| increase. We ask as you consider

725K-1M 137
er 208 policy changes — either by
— a4 legislation or rules — through the
Esa a7 lens of the impact it will have on
_. — housing. Will it be a barrier, or will
_— sass it work to solve the housing crisis
laiorbn dalek anaerobic cui ole ezazoanenedn we are currently in?

income data from the 2023 American Community Survey, U.S. Census Bureau

In 2024: 3,222 households

File and source

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2025-04-17_testimony_dawn-crandall-home-builders-association-of-michigan_50166.pdf

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Our copy

2025-04-17_testimony_dawn-crandall-home-builders-association-of-michigan_50166.pdf

Original

www.house.mi.gov