LANSING, Mich. (WZMQ) – The Home Builders Association of Michigan (HBAM) is addressing concerns to its Single Family Home (SHF) permit numbers predicted for 2026.
Across 2024, HBAM announced its new build production was up and rising at 4.7 percent, issuing 15,108 single family home permits. After a long government shutdown, HBAM has yet to receive its final data from 2025, but notes that last year’s numbers are estimated at 15,821 SHF permits, by about 5%.
Now, under the same econometric model, HBAM is expecting 2026 numbers to fall between these past years by about 2.8 percent, at around 15,376 SFH permits.
“Historically, this model is very accurate, but I do have some optimism that we will be wrong and our numbers will continue to rise,” said CEO, Bob Filka.
The association’s 2026 predictions stem from material price increases, rising mortgage rates and consumer affordability issues.
According to a press release, HBAM’s estimated average market value of new single-family homes built last year was $475,024, up 6.5% over the prior 12-month period ($445,864). These combined factors have resulted in more than 1.1 million households no longer being able to afford the average price for a newly constructed home in Michigan.
To read the full press release, visit hbaofmichigan.com.
