On Sunday, The Detroit Free Press chronicled the current status of the residential construction industry in Metro Detroit, exploring 6 reasons why they believe it has leveled off as we head into 2022:
Slower population growth; fewer builders, contractors, and skilled trade workers; lack of available financing for larger developments/subdivisions; lack of land in desirable communities; the cost to add water and sewer to rural developments; pandemic-related supply chain issues and skyrocketing labor/material costs
Compared to our market prior to the 2008 Great Recession, we are currently only pulling 5,000 permits per year; in the early 2,000’s, we were pulling over 13,000 permits per year. For a little additional context, to compare with other markets, our Las Vegas market regularly hits about 15,000 permits, with about 1/3 the population of Southeast Michigan.
As we enter year 3 of the pandemic home market, with prices still skyrocketing and inventory still at its lowest levels in years, this article goes a long way in explaining why we are where we are. It also quotes are friends Tim Stapleton & Melissa Cervin with Lombardo Homes, which is lovely.
You can read the full article here, and as always, don’t hesitate to call or email us with questions!
Lou Bitove & Jeff Bortnick, owners of The New Home Experts®, have more than 35 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!