Builders Say Michigan Faces Affordable Housing Crisis – NMP Skip to main content

Builders Say Michigan Faces Affordable Housing Crisis

Phil Hall
Jun 07, 2017
Mortgage servicers are increasingly working to make real estate-owned (REO) assets a more appealing and viable option for consumers

Michigan is approaching a near-crisis in affordable home building, according to the head of the Home Builders Association of Michigan.
 
In an interview with the Detroit News, Bob Filka, CEO of the Lansing-based builders’ association, said that bank lending for affordable housing developments are limited while the regulatory and construction costs for these projects have become onerous. Simultaneously, he added, there is a growing demand for larger homes that provide greater returns on investment.
“It’s a multifaceted challenge and problem for the state,” said Filka. “We wanted to put a framework out there that said, ‘Hey, we live and breathe this stuff. We are telling you these issues collectively are going to cause a major problem for this state if we don’t do something about them.’”
 
Filka noted that Michigan has built an average of 28,000 homes annually during the past 50 years, but only 16,000 new single-family homes are forecast for completion this year—far below the 25,000 to 30,000 new single-family homes per year need to keep up with population shifts, demographic changes and the normal life cycles of older housing.
 
The builders’ association recommended a new partnership should begin between the state housing authority and economic development organizations to determine how local municipalities can manage land development, housing and renovation approval processes. The group also called on local businesses and government leaders to give more priority attention to the affordable housing issue.


 
Published
Jun 07, 2017
Blend Labs Has Cut 420 Jobs Since April

The 25% reduction of its workforce comes as it posts $478 million Q2 loss.

Industry News
Aug 17, 2022
UWM Now Offering Temporary Rate Buydowns

The temporary buydowns will lower borrowers’ interest rates by up to 2% for the first two years of a mortgage. 

Industry News
Aug 17, 2022
Rocket Mortgage Teams With Santander Bank

Rocket's mortgage services now available to Santander's U.S. banking clients

Industry News
Aug 16, 2022
Ameris Bank Commits $10M To Help 1st-Time Homebuyers

The Ameris Down Payment Grant Program will help eligible first-time buyers with down payments and closing costs.

Industry News
Aug 16, 2022
Competition Now Highest For Lowest-Priced Homes

In reverse of pandemic trend, competition for mid- and high-priced homes not as white hot among buyers.

Analysis and Data
Aug 16, 2022
Impac Mortgage Slashes Staffing Levels By 48%

From 330 in 4Q 2021, headcount now stands at 170 for California lender

Non-QM
Aug 15, 2022