>--
New single-family
home construction
in the area is
expected to continue
along a steady
course.
JULIE EDGAR STAFF WRITER
ast year was a banner year for bricks and
mortar. And while experts in the build-
ing industry and one economist say this
year won't disappoint, they don't foresee
another growth spurt.
Housing starts are expected to rise
slightly nationwide and stay about the
same statewide in 1996 and 1997,
according to David F. Seiders, chief
economist of the National Association of Home
Builders.
That's not a bad thing.
The past two years have been the best for
Michigan home builders in two decades.
"What happened last year for Michigan and
the Detroit area was some reduction in the
level of production from 1994, but not as big a
decline as for the United States in general,"
he added.
Irvin H. Yackness, executive vice president
and general counsel for the Building Industry
Association of Southeastern Michigan, re-
ported that 15,144 building permits for sin-
gle-family dwellings were issued in 1995, a
decrease of 600 from 1994. In previous years,
however, the number of permits issued hov-
ered in the 11,000 range.
Speaking at a BIA installation luncheon
last week, Mr. Yackness elicited wild applause
when he pronounced that the cumbersome
Model Energy Code is "dead." Gov. John En-
gler repealed the law, which, among other pro-
visions, required basement insulation in all
new homes.
"The homes we build today are energy effi-
cient, sufficiently consistent with affordabili-
ty," he said. If new home buyers want
basement installation. they can have it, but
builders do not want to be shackled by state
regulations, Mr. Yackness continued.
Most of Oakland County's single-family a sustainable level of production," he said.
home construction occurred last year in West "We're talking about good levels of activity.
Bloomfield, Novi, Orion Township and Wa- It doesn't mean that something is fin-Ida-
terford Township, respectively. Outside the mentally wrong with the market."
Detroit's housing growth is closely tied to
county, Canton and Macomb townships at-
the performance of the auto-
tracted the most new single-
motive market, Mr. Seiders
family developments.
pointed out, and this year, pro-
Mr. Seiders cited a few fac-
duction of cars. and trucks is
tors for new-found strength
expected to flatten.
in the home-building sector:
Nationwide, construction of
low mortgage rates, low in-
multi-family dwellings like
flation, high employment and
apartment buildings and con-
a resurgent auto market. He
dominiums will rise about 5
expects long-term mortgage
percent, but not nearly to the
rates to continue at about 7
levels it did in the 1980s, Mr.
percent and believes short-
Seiders said.
term interest rates will de-
According to his data, con-
cline again.
struction of multi-family
Gilbert "Buzz" Silverman
dwellings in the Detroit area
of the Silverman Companies
this year will also rise only
of Farmington Hills attrib-
slightly — about 4 percent
uted the two-year building
from 1995.
boom to the passage of Pro- Gilbert "Bun" Silv erman
While home remodeling
posal A, as well. The law re-
and new construction have boomed in the
sulted in deep cuts in the property tax.
This year, however, Michigan won't per- state, home resales have fallen by an aver-
form as well as the nation as a whole, Mr. Sei- age of 2 percent in every part of the nation
ders said. The state's housing growth will except the Northeast, according to the Na-
actually dip by 1 or 2 percent, whereas the na- tional Association of Realtors. co
At last week's BIA meeting, Mr. Silverman < c ; : ,'
tion's housing starts will rise about 4 percent.
Most of the growth in Michigan — 80 per- was elected president of the BIA for 1996. —
cent, he said — will be in the construction of Along with him, Scott Jacobson of the S.R. C”
single-family homes this year, but it won't be Jacobson Development Corporation in Bing- >_
ham Farms was elected first vice-president; cc
as robust as last year's.
"The key reason, really, is that if you look Peter Burton of Burton Katzman Develop-
back to 1994, the level of activity was very ment in Bingham Farms became secretary; z
strong — record levels for single-family con- Rex Rosenhaus of Uniland Corp. in Farm-
struction that was a little unsustainable. You ington Hills became vice president; and Mr.
did have some overbuilding. We're viewing Yackness was elected executive vice presi- 3
the market as settling down a bit more into dent. ❑