Michigan’s home builders are optimistic about the year ahead.
The recession walloped Michigan’s home building industry. Many builders went out of business. Others merged and focused on home remodeling.
But a new survey shows Michigan’s home builders are optimistic about getting back into the business of building new homes. They say pent up consumer demand, especially for more expensive homes ($200,000 to $800,000), is pushing up the Michigan Housing Index.
The MHI rose to 59 (solidly optimistic) in the first quarter of the year. Up from 38 (pessimistic) in the fourth quarter of 2012. The Michigan Housing Index was at 44 (pessimistic) in the first quarter of 2012.
“The survey confirms what we have been hearing from homebuilders and remodelers for the past several months,” said Robert Filka, HBA Michigan CEO in a written statement.
The Home Builders Association expects about 14 thousand new single family home construction permits will be issued this year in Michigan, a 39% increase over last year.