It s just impossible : Lumber, building material shortages add to already dysfunctional marketplace
HBA of Michigan said the cost of lumber alone has raised the cost of a new home by $36,000 since the beginning of the year. Author: Alana Holland (WZZM13) Updated: 6:45 PM EDT April 30, 2021
MICHIGAN, USA For many people building homes, decks, or completing other projects, the price of the materials has increased the budget.
In fact, the Home Builders Association (HBA) of Michigan estimates the cost of lumber has raised the price of a new home by $36,000 since the beginning of the year. It s just thrown fuel on the fire of affordability in our state, said Bob Filka, CEO of HBA of Michigan, As it is, we are facing a huge housing shortage in our state, particularly for homes that are really in that middle price range, that first-time homebuyer home.
North American timber harvesting and mills haven’t caught up to demand generated during the pandemic in 2020 as homeowners took advantage of low interest rates and, for many, money saved during lockdowns to tackle remodeling projects or build new homes.
After a wave of increases last fall, prices for lumber are escalating again, setting new highs this month just as the national construction season starts. The situation is leaving many Michigan builders and suppliers wondering if they’ll be able to buy what they need to meet peak sales this summer.
“We don’t think in the next six month that there’ll be a lot of relief in sight,” Mans said.
The road to 16 new building sites in a small west Michigan town won’t be built until spring, but potential homebuyers in Newaygo already are envisioning what it could be like to live in the subdivision just north of the Muskegon River.
In this small town with few available houses and about one-third of homes built before World War II, competition for homes gets just as fierce as in Grand Rapids, Ann Arbor or northern Michigan.
Realtors expect floor plans in River Hills Estate such as “London,” a bilevel with a 2-car garage starting at $175,000, and “Reno,” with three bedrooms and baths starting at $220,000 to attract people who want to live in the city, but not in a starter home or fixer-upper.
Grand Rapids Business Journal
Photo by iStock
Single-family home construction shows a strong pandemic recovery, according to the latest numbers from the Home Builders Association of Michigan.
Residential permit data, compiled by HBAM from U.S. Census Bureau reporting, showed a total of 13,551 single-family home permits issued across Michigan from January through November 2020.
A total of 1,213 permits were issued in November 2020, which was nearly 23% higher than November 2019. It also marked six consecutive months above the 1,200 permits-per-month threshold. Lastly, the 10,451 permits issued from May through November 2020 outpaced the 10,060 permits an increase of nearly 4% issued during the same timeframe in 2019.
“The higher number of permits issued since May, including November’s large increase over 2019, leads me to the conclusion that the energy for new home construction in Michigan continues,” said Bob Filka, CEO of HBAM. “We continue to work closely with our