Lumber shortage plaguing Michigan construction companies
Michigan’s real estate market is hot these days, with demand for single-family homes pushing up prices. But state home builders are struggling to build homes these days.
In the four-county (Macomb, Oakland, St. Clair and Wayne) region of southeast Michigan in April, permits for new homes fell 28% from the previous month.
Bob Filka is a member of the Home Builders Association of Michigan. He says other parts of the state are seeing single-digit percentage drops.
He blames a nationwide lumber shortage for pushing up prices.
“Unfortunately for new home buyers who are building new homes, literally in a matter of weeks, the price initially offered for that home could go up to several thousand dollars,” says Filka.
Filka does not expect timber prices to stabilize until next year.
He says that during the pandemic, many builders turned to renovations. But with the current shortage of lumber, Filka says many of those jobs are drying up as well.
“We can weather the storm,” says Filka, “but yes, it certainly could impact a number of builders and contractors in our state.”