Toolbox Newsletter September 2025
July Housing Starts Edge Higher Despite Challenges
Single-family housing starts posted a modest gain in July as builders continue to contend with challenging housing affordability conditions and a host of supply-side headwinds, including labor shortages, elevated construction costs and inefficient regulatory costs. Led by solid multifamily production, overall housing starts increased 5.2% in July to a seasonally adjusted annual rate of 1.43 million units, according to a report from HUD and the U.S. Census Bureau. The July reading of 1.43 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 2.8% to a 939,000 seasonally adjusted annual rate and are down 4.2% on a year-to-date basis. The multifamily sector, which includes apartment buildings and condos, increased 9.9% to an annualized 489,000 pace. On a regional and year-to-date basis, combined single-family and multifamily starts were 10.2% higher in the Northeast, 17.7% higher in the Midwest, 2.4% lower in the South and 0.5% lower in the West. Overall permits decreased 2.8% to a 1.35-million-unit annualized rate in July. Single-family permits increased 0.5% to an 870,000-unit rate and are down 5.8% on a year-to-date basis. Multifamily permits decreased 8.2% to a 484,000 pace. Looking at regional permit data on a year-to-date basis, permits were 16.6% lower in the Northeast, 9.1% higher in the Midwest, 3.4% lower in the South and 5.1% lower in the West.
Board of Directors 2025 -President, Kevin Maurer -Vice President, Jeff Wedding -Secretary, Mike Zemla -Treasurer, Mindy Ball -Immediate Past President, Jeremy Morgan Director Mark Eneix Director Matthew Paruch Director Zach Phillips Director Jamie Richmond Director Lisa Sears Director Daneille Stuber Executive Officer Christy VanSchoten
Calendar of Events (Dates Subject to Change) GENERAL MEMBERSHIP MEETING SEPTEMBER 17TH AT CREEKSIDE HEARTH PATIO & BBQ! PARADE OF HOMES Coming soon! PULL & PLATE OCTOBER 16TH AT THE GRAND BLANC HUNTSMAN'S CLUB REGISTRATION OPEN UNTIL 9/30/25 NO LATE REGISTRATIONS ACCEPTED Trunk or Treat Oct 30th Carter Kitchen & Bath
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Townhouse Construction Hits Record Townhouse construction expanded more than 9% on a year-over-year basis in the second quarter of 2025, with single-family attached starts totaling 45,000, according to NAHB analysis of the most recent Census data. Using a one-year moving average, the market share of newly-built townhouses stood at 18.3% of all single-family starts for the second quarter. With gains over the last year, the four-quarter moving average market share is the highest on record for data that goes back to 1985.
Make Plans to Attend The Builders’ Show The NAHB International Builders’ Show® (IBS) is the premier event for the residential construction industry, bringing together tens of thousands of industry professionals and 1,700+ top manufacturers and suppliers every year. Registration is open as of Sept. 2 for IBS 2026, which will take place Feb. 17-19 in Orlando. Here are three good reasons to make your Builders' Show plans now: 1) Star-studded speakers; 2) The latest products and trends on the Exhibit Floor; and 3) The show’s fond farewell to Orlando. Register at buildersshow.com. Apply Now to Win a Prestigious NAHB Award Applications for NAHB’s Awards are open. The award programs include: The Best in American Living™ Awards, sponsored by SMEG; the Associates of Excellence Awards; the Custom Home Builder of the Year Award; the Leading Suppliers Council Spark Award; the Professional Women in Building (PWB) Awards; the NAHB/Builders Mutual Safety Award for Excellence (SAFE) Awards; the Nationals℠ Awards, NAHB’s largest awards competition; the Young Professional Awards; and and the Student Chapter Awards. The deadline for entries is Oct. 6.
Two Big LIHTC Advancements Two recent policy actions sought by NAHB will expand and strengthen the Low-Income Housing Tax Credit (LIHTC). First, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will be permitted to double their annual LIHTC investment cap from $1 billion to $2 billion annually. Second, the newly enacted One Big Beautiful Bill Act includes language that NAHB fought for that includes the biggest expansion of the LIHTC in decades.
Who Are NAHB’s Builder Members New figures from NAHB highlight the enduring role of small businesses in the residential construction industry. According to the latest NAHB member census, most builder members continue to operate on a modest scale amid a housing industry facing affordability challenges, labor shortages, and material cost volatility. The full census findings are available in the August 2025 special study.
Confidence in the market for new multifamily housing increased year-over-year in the second quarter, according to the Multifamily Market Survey (MMS) released recently by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 46, up two points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 82, up one point year-over-year. The index and all its components are scaled so that a number below 50 indicates that more respondents report conditions are poor than report conditions are good. The MPI measures builder and developer sentiment about current production conditions. The MOI measures the multifamily housing industry’s perception of occupancies.
Podcast Looks at Policy Agenda On the latest episode of NAHB podcast Housing Developments, NAHB CEO Jim Tobin and COO Paul Lopez discuss how the rest of the year looks as Congress returns to Washington in September. The first order of business will be to keep the government open in the face of a Sept. 30 appropriations deadline. Tobin noted that home builders and buyers rely on many programs funded through Congressional appropriations, like the National Flood Insurance Program (NFIP), HUD and VA mortgage programs, and many more. Tobin also noted that NAHB will be focused on funding for Job Corps, a program vital to workforce development in construction.
Multifamily Developer Confidence Improves in Q2
Foundation Types by Region In 2024, 73% of new single-family homes started were built on slab foundations, according to NAHB analysis of the U.S. Census Bureau’s Survey of Construction (SOC). Although this was a modest year-over-year increase of 0.6 percentage points, it continues the upward trend in slab adoption, widening the gap between slabs and other foundation types. In comparison, basements (full or partial) accounted for 17% of new homes, while crawl spaces made up just 9.2%. In colder northern areas, where foundations extend below the frost line, basements are more common. Warmer regions favor slab foundations for their affordability and efficiency.
NAHB Members Enjoying Big Savings in 2025
NAHB has unveiled several new savings opportunities designed to make membership even more valuable in 2025. Here's what’s new: Best Buy. NAHB members can receive immediate discounts at Best Buy just by creating an online account with the NAHB member code. Go to nahb.org/bestbuy for more information. Ford Pro. Members can save between $500 and $5,000 on the purchase or lease of a Ford truck, van, car or SUV. Go to nahb.org/ford for more details. Mercedes-Benz Vans. Mercedes-Benz Vans has introduced a $500 disc- ount exclusively for NAHB members. Visit nahb.org/mbvans. QuickBooks Savings Through Baytek. NAHB members can unlock a suite of valuable benefits with QuickBooks provided by Baytek. Go to nahb.org/quickbooks for more. RAM Trucks. RAM Trucks is offering NAHB members $1,000 off the purchase or lease of eligible RAM vehicles. Visit nahb.org/ram for details.
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HBA OF MID-MICHIGAN MEMBERSHIP 2025
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