HBAM: Housing industry is still in the COVID-19 chokehold

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The housing industry in Michigan is still reeling from the COVID-19 shutdown.

According to the latest data from the Home Builders Association of Michigan, housing permits for single-family homes in the state have shrunk by more than 20% as a result of the COVID-19 shutdown, and industry leaders indicate that factors related to COVID-19 will keep production levels low for a while longer, despite strong demand.

A total of 4,463 permits for new single-family housing were issued through May statewide, compared to 5,617 through May of last year. A shortage of building materials, labor shortages and other challenges continue to prevent the industry from full recovery.

“As we stressed with the governor when trying to explain why she should deem the residential construction sector essential like most other states, the multilayered supply chain that supports residential housing can’t just turn off and turn on in a matter of weeks or even months,” said Bob Filka, CEO of the HBAM. “We are now seeing the results of that disrupted supply chain at a time when the industry should be energizing our state’s economy even more,”

Filka also stressed customers, whether they are looking to buy a newly constructed home or looking to remodel, are going to experience delays and price increases given the current market dynamics caused by the shutdown.

HBAM has issued a proposed action plan to aggressively attack challenges faced by the industry. Copies of the HBAM report, “Housing Challenges Threaten Our Economic Growth—Where Will Ten Million Michiganders Live?” can be downloaded at hbaofmichigan.com.

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