Michigan builders are expecting an 8% increase this year in new home construction permits, good news for the industry but still far below pre-recession levels of activity.
The annual forecast from the Home Builders Association of Michigan anticipates that 13,701 single-family home permits will be pulled across the state, up from 12,735 permits last year.
The association says that three main factors will determine whether its forecast is met or exceeded: continued increases in Michiganders working full-time; relatively low oil prices and a return to less extreme weather in February and March.
Last year's forecast was for 15,966 new home permits, which turned out to be off by 20%. The association attributes that shortfall to bad weather early in the year and a shortage of skilled laborers.
Building activity has lately been well above recessionary levels, but still well below that of the housing bubble years and the 1990s. The builders association says the state continues to face a shortage of skilled laborers, which could hold back the rebound.
"We saw many scattered site builders have delays of two or even three months in getting framing crews to their sites last year," CEO Bob Filka said. He said this year's projection is "intentionally more conservative than in previous years."
A survey of builders association members showed that 36% believe the industry is doing much better than last year, while 57% say it is doing slightly better.
©2015 Detroit Free Press. Distributed by Tribune Content Agency
