|October 31, 2022
Exclusive Service for HBA & AAM Members
|Make the most of your membership - get involved! HBA offers business opportunities you won't find anywhere else! Check our website at www.builders.org for the latest information on meetings, events, webinars, updates and member savings.
MULTIFAMILY PERMITS RESUME UPWARD TREND
Based on residential permit data compiled by HBA and reported in the HBA/Carter Lumber Southeastern Michigan Residential Building Activity Report™ a total of 260 single-family home (SFH) permits were issued in Macomb, Oakland, St. Clair and Wayne counties for September 2022. HBA’s econometric model had forecast a total of 301 permits for the month. September’s result marks the slowest September for SFH permits since 2011 (244). It was also nearly
40 percent below the September 2021 total of 432 permits.
As noted during the last few months, the baseline rate for 30-year fixed mortgages continues to be the biggest factor contributing to the SFH slowdown. The 30-year rate, plus points, increased to 6.91 percent in September. It is up by 3.3 basis points compared to September 2021 and at its highest level since August 2008 (7.18%) during the midst of the Great Recession.
The trailing 12-month total for SFH permits now stands at 3,841, its lowest point since January 2013 (3,741). Meanwhile, average permit values – a reflection of building input costs – remain on an upward trend, growing by nearly 21 percent year-over-year.
Multi-family (for rent) construction resumed its upward trend in September with another 312 permits, bringing the year-to-date total to 2,059. This makes 2022 the best start to the year for MFH permits since September 1998 (3,914).
Looking at the other major economic factors used to forecast southeastern Michigan SFH permit activity, the results are mixed. On the positive side, North American Vehicle Production is up by over 40 percent year-over-year as supply chain issues continue to resolve. From a labor and employment perspective, things continue to improve remaining only about 2 percent below the pre-pandemic 12-month average for both number of people in the workforce and employed. On the downside, crude oil prices remain up 45 percent year-over-year and the average sales price for existing homes fell 1.8 percent year-over-year.
HBA’s econometric model is forecasting a continued decline in SFH permit activity through the remainder of 2022.
NOTE: The graphs presented above - along with additional data and charts - can be found each month, in larger format, by going to www.builders.org; Log in using your Member ID#, Mouse Over the menu item "Building News & Metrics" Selecting "Industry Related Metrics" from the fly-out menu.
AAM'S 2023 MULTIFAMILY RENTAL MARKET OUTLOOK
IN PERSON ON FRIDAY, NOVEMBER 18
This is a must attend event for every multifamily property owner!
11:00 a.m. Registration & Networking
11:30 a.m. Luncheon and Program
1:30 p.m. Apartment Building Management Worker’s Compensation
Self-Insured Fund Dividend Check Distribution
Great Oaks Country Club
777 Great Oaks Blvd.,
Rochester MI 48307
Cost: $65 Member/$75 Guest
KEYNOTE ECONOMIC FORECAST by
Elliot Eisenberg, Ph.D, Graphs & Laughs, LLC
LOCAL MARKET UPDATE by
Kevin Dillon of Berkadia
PLEASE REGISTER ONLINE TODAY.
AWARDS RECOGNITION AND HOLIDAY CELEBRATION -
WEDNESDAY, DECEMBER 7 AT SUBURBAN COLLECTION SHOWPLACE IN NOVI - JOIN US!
Please make plans to join many other HBA members and guests at the 2022 Awards Recognition & Holiday Celebration on Wednesday, December 7th in the Legacy Ballroom at Suburban Collection Showplace in Novi.
HBA's annual celebration will honor President Ben Templeton, who has graciously served as our HBA's President for two years.
The evening begins with an Hors D'oeuvres Reception followed by an elegant full dinner, holiday dessert and Awards Presentation. CLICK HERE TO SEE THE FULL LIST OF HONOREES AND MAKE YOUR RESERVATIONS.
Last year's event was attended by nearly 300 members and guests. If you'd like to bring your company into the spotlight for the audience attending this year, PLEASE RESERVE YOUR SPONSORSHIP HERE.
IF YOU WISH TO PLACE AN AD IN THE DECEMBER ISSUE OF THE MAGAZINE HONORING ONE OR MORE OF THE AWARD HONOREES, PLEASE CALL NANCY ROZUM AT 248-360-7113 OR EMAIL: firstname.lastname@example.org
HOW TO SELL MORE HOMES THROUGH INTENTIONAL DESIGN - A Sales & Marketing Council Seminar Featuring Todd Hallett, TK Design & Associates
All HBA members and guests are invited to attend the next Sales & Marketing Council seminar on Tuesday, November 8 from 8:30 - 10 a.m. in HBA's First Floor Conference Room. I encourage you to take advantage of this seminar.
Todd will discuss:
- Design DOs and DON'Ts for 2023
- Architectural Technology that will enable builders to reduce mistakes and increase margins.
- Lean design secrets that will eliminate waste and improve marketability.
HBA's Sales & Marketing Council is generously sponsored by DUPONT TYVEK.
The cost to attend is $10 per person.
Please REGISTER ONLINE today.
If you have questions, please call Riva Gulli at 248-862-1002.
PWB'S LUNCH, LEARN & NETWORKING
Trevarrow, Inc. Fall Showroom Tour & Lunch
Thursday, November 10
- See current trends in luxury appliances for builders and designers from Sub-Zero, Wolf and Cove appliances
- Brief presentation about the newest appliances and the services Trevarrow, Inc. offers
- Enjoy a Fall themed lunch while strolling the beautiful Trevarrow, Inc. showroom of 11 professionally designed kitchens
- Touch, feel and see how the latest appliances perform
Cost to attend is $20 per person including lunch. YOUR PARTICIPATION IN THIS EVENT HELPS SUPPORT PWB'S SCHOLARSHIP FUND!
PLEASE REGISTER ONLINE or call Riva Gulli at: 248-862-1002.
WELCOME NEW MEMBERS
TOM ABBOTT, PELLA WINDOWS AND DOORS
SPONSOR: STEVEN JONES, ROBERT R. JONES HOMES
THANK YOU RENEWING MEMBERS
APARTMENT ASSOCIATION MEMBER
RONALD RIVERS, RIVERS INVESTMENT/MANAGEMENT GROUP
JEFFREY BAIOCCO, B & B CUSTOM BUILDERS
TERRY NOSAN, NOSAN VENTURES, LLC
DAVID V SCACCIA, SCACCIA BUILDING CO.
MIKE MATTERA, VESTA HOMES INC
TONY MCGUCKIN, TRADEMARK BUILDING CO.
STEVEN SHAPIRO, ASA BUILDERS SUPPLY CO.
MIKE BRATCHER, BRATCHER ELECTRIC
VINCENT GELSOMINO, FLEETCOR
KYLE HUNT, REMODELERS ON THE RISE
PAUL PERUGI, SKYLINE CHAMPION CORP.
VIPUL DESAI, P.E., SOMAT ENGINEERING, INC.
STEVEN M. WHITE, CLTC, STEVEN M. WHITE & ASSOCIATES
LACHHMAN JINDAL, WHOLESALE BUILDER SUPPLY, INC
CHARLIE HOFFMAN, WIMSATT BUILDING MATERIALS
KEVIN SHELL, ALLIED CONSTRUCTION CO.
JAY CIOKAJLO, SKYLINE CHAMPION CORP.
ANDY BELCHER, STONE PRO LLC
HEATHER ROBERTS, STONE PRO LLC