LANSING – New home construction will see a robust increase in 2016, according to a forecast from the Michigan Association of Home Builders.
The association estimates that 16,831 permits for new construction will be issued in 2016, up from 13,467 estimated for 2015.
Association CEO Bob Filka said the increase stems from job growth and increasing shortages of existing housing stock. New home construction slowed to nearly nothing during the Great Recession of 2008-09.
“The reality is the forces of supply and demand are finally kicking in,” Mr. Filka said in a statement. “Existing home prices continue to rise in most markets because fewer and fewer choices are available to homebuyers. This price pressure will push more to look at building new.”
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