Residential Home Construction Boom Predicted for 2013

The Home Builders Association of Michigan is forecasting that the number of single-family homes constructed in 2013 will increase by 39 percent over last year.

And area home builder associations are confirming those predictions for the increase in residential home construction.

The Holland-based Lakeshore Home Builders Association is seeing positive, steady growth in new home construction as home inventories are depleted and new homes become more in demand. And U.S. home prices jumped by the most in 6 ½ years in December, spurred by a low supply of available homes and rising demand.

Consumers are struggling to find the home they want with the available inventory, so they are seeking out a custom residential builder.

Ultra-low mortgage rates and steady job gains have fueled more demand for houses and apartments. More people are moving out into their own homes after doubling up with friends and relatives in the recession.

At the same time, the number of previously occupied homes for sale has fallen to the lowest level in 11 years.

Robert Filka, CEO of HBA Michigan, said the group’s outlook is more positive than ever. HBA Michigan attributes its positive forecast to a stronger Michigan economy. The housing recovery is being boosted by job creation. According to economists, construction companies have added 98,000 jobs in the past four months, the best hiring spree since the bubble burst in 2006. Economists forecast even more could be added this year.

The number of single-family home permits recorded year-to-date in Michigan was up 36 percent through the end of October. 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. For single-family home permits in 2013, HBA Michigan forecasts 13,928 permits to be issued in the coming year.