LANSING — Single-family housing permits in Michigan rose 3.7% through July compared to last year, according to data released Wednesday by the Home Builders Association of Michigan.
Per an Aug. 27 news release from the organization, U.S. Census data shows 9,117 permits have been issued statewide so far this year, up from 8,791 permits over the same period in 2024.
“Many may find this surprising with permits down some 5% nationally year-to-date, but need and statewide demand for housing has not declined in Michigan,” said HBAM CEO Bob Filka.
Filka credited the increase to state and local initiatives supporting workforce housing and said more communities are taking proactive steps to attract housing investment.
He also highlighted the Michigan State Housing Development Authority’s expanded role in supporting market-rate housing production.
At the same time, Filka warned that rising costs are limiting access to new homes. He cited national research showing that each $1,000 increase in the price of a newly built Michigan home makes it unaffordable for more than 3,800 households.
“We’re hitting a cost ceiling that is pushing more and more Michigan households away from being able to purchase a new home,” Filka said.
He called for bipartisan action in the Legislature to reduce regulatory barriers and improve predictability for builders, adding that the state is on pace to build about 16,000 single-family homes this year. Economists say Michigan needs 25,000 new homes annually to keep up with aging housing stock and demand, according to Filka.