The Home Builders Association of Michigan identifies ways to help the statewide housing shortage
The Home Builders Association of Michigan recently released its Housing Summit 2017 report about how the changing economic environment is creating a housing shortage in the state.
The report, titled, “Housing Challenges Threaten Our Economic Growth, Where Will Ten
Million Michiganders Live?” is the result of statewide testimonies on the challenges and opportunities affecting residential construction from regional housing summits in Michigan.
HBA of Michigan outlined a 13-point action plan that they expect, over time, will alleviate a housing shortage that is driving up prices and forcing many middle class citizens away from the market. Additionally, it is expected to serve as a major stimulus for the overall Michigan economy.
“Though the housing industry has experienced modest growth since the end of the recession, the recovery has been slowed significantly due to policies that hamper housing investment, including lengthy regulatory delays and requirements that are raising costs. This combined with a severe shortage of skilled workers and lots to build upon means production levels aren’t able to keep up with demand,” said Bob Filka, HBA Michigan CEO. “We hope this report serves as a call-to-action tool for economic developers and policy leaders to address the housing challenges our state faces.”
Here are a few of the Home Builders Association of Michigan’s recommendations that they believe is necessary in attracting a greater housing investment:
1. The Michigan State Housing Development Authority (MSHDA), in partnership with economic development organizations, should conduct a study analyzing how local municipalities manage land development, housing and renovation approval processes—this analysis should include recommendations on best practices that encourage housing investment, reduce costs and delays and greatly increase predictability and certainty.
2. Local business and government leaders should be encouraged to collaborate on strategies to address obtainable housing shortages (e.g., expedited review combined with other voluntary incentives such as fee reductions or waivers to increase the stock of obtainable housing).
3. The Legislature should pass housing impact statement legislation requiring communities to assess the impact of any new ordinance on housing before adoption.
4. The Legislature should extend inventory tax reform to land/lots to lower the financial risk of lengthy development processes.