The easiest conclusion for the recent HBA Report On New Homes, was to outline the lack of participation from first time buyers in the new home market across Southeastern Michigan.
This may come as a shock if you’ve been searching for a new home around Metro Detroit recently, but in many other markets across the country, new home construction is often geared towards first time buyers. Seriously. In some markets, advertising mortgage payments instead of the actual base price of new homes (to attract renters, parental basement dwellers, etc.), is standard operating procedure.
Of course locally, that has not been the case. With the price of new homes in Wayne, Oakland, and Macomb averaging over $375k in 2016, the ability for first time buyers to gain entry into the new home market remained difficult at best.
So, in hoping they might come up with a few fixes, the HBA of Michigan commissioned a study, which produced some statistics and charts and what have you.
The crux of the recommendations were more studies; so don’t expect $150k starter homes in Birmingham any time soon. But they did bring attention to the issue, which is a start. The numbers don’t lie and a strong residential building industry can do wonders for the local economy.
You can read the full report here (which we didn’t read), or the summary by Crain’s Detroit here (which a few of us kinda read); or, just glance at the charts like Jeff did.
Lou Bitove & Jeff Bortnick, owners of The New Home Experts®, have more than 30 years combined experience in real estate, much of that with builders like Pulte & Toll Brothers. They also provide market research for area builders, developers and national firms. If you’re considering a new home, remember: the builders rep represents the builder, not you. Work with the only local agents in Metro Detroit to specialize in new homes, and save money in the process – ask us how!
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