Toolbox Newsletter December 2025
Builder Sentiment Flat in November Amid Headwinds
Market uncertainty worsened by the government shutdown along with economic uncertainty stemming from tariffs and rising construction costs kept builder confidence firmly in negative territory in November. Builder confidence in the market for newly built single-family homes rose one point to 38 in November, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). In a further sign of ongoing challenges for the housing market, the latest HMI survey also revealed that 41% of builders reported cutting prices in November, a record high in the post-Covid period and the first time this measure has passed 40%. Meanwhile, the average price reduction was 6% in November, the same rate as the previous month. The use of sales incentives was 65% in November, tying the share in September and October. Derived from a monthly survey that NAHB has been conducting for more than 40 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index gauging current sales conditions increased two points to 41, the index measuring future sales fell three points to 51 and the gauge charting traffic of prospective buyers posted a one-point gain to 26.
Leadership List
Calendar of Events (Dates Subject to Change) PARADE OF HOMES Available now at the hbaofmidmichigan.com Annual Meeting & Holiday Party Installation of Officers December 3rd 5:30pm the Agitated Grape 310 N Main St Davison,MI
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
JOIN US FOR OUR FIRST HBA OF MID-MICHIGAN PARADE OF HOMES TOUR IN OVER A DECADE! For the first time ever, we've brought the 2025 Parade of Homes tours to your desktop, where you can tour each builder video in the comfort of your own home. Get to know builders J W Morgan Construction LLC, Lake & Land Custom Homes, M/I Homes and Weir Building Company. A special thank you to our 2025 Parade of Homes Sponsors
NAHB Applauds Delay of Energy Rule NAHB Chairman Buddy Hughes commended HUD after the agency issued a six-month delay in the implementation of mandatory energy code policy for multifamily developers. NAHB has been urging HUD to rescind the Biden administration’s determination which set the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 as the mandatory minimum energy standards for its single-family and multifamily housing programs.
IBS Centrals: Another Great Reason to Attend IBS Among the many great things about the International Builders’ Show® (IBS) are the centrals. IBS centrals offer a great opportunity to connect with like-minded professionals during the Show, which takes place Feb. 17–19 in Orlando. The centrals are lounge-like areas where you can explore new ideas, refine your skills and learn from experts in your industry niche. There are IBS centrals for custom building, design, international, multifamily, remodeling and sales. The Centrals are open to all IBS registrants. Register for IBS at BuildersShow.com. Multifamily Loan Purchase Caps to Rise 20% in 2026 The Federal Housing Finance Agency (FHFA) announced on Nov. 24 that the 2026 multifamily loan purchase caps for Fannie Mae and Freddie Mac will be $88 billion for each, for a combined total of $176 billion to support the multifamily market. The 2026 caps represent a 20.5% increase from 2025. As in 2025, when the cap for each Enterprise was $73 billion, multifamily loans that finance workforce housing will be excluded from the 2026 limits. All other mission-driven loans remain subject to volume caps.
New WOTUS Rule Brings Clarity In a move championed by NAHB, the EPA and U.S. Army Corps of Engineers have announced a proposed updated definition of “waters of the United States” (WOTUS) that would provide builders much-needed clarity by defining which waters are subject to federal jurisdiction under the Clean Water Act while continuing to protect our nation’s vital waterways. The proposed rule was published on Nov. 20 in the Federal Register for a 45-day comment period.
NAHB Backs Proposed ESA Reforms In a move supported by NAHB, the U.S. Interior Department has announced four proposed regulatory rules regarding reforms to the Endangered Species Act (ESA) that would rescind changes made during the Biden administration that have created regulatory barriers that hinder housing development and economic activity. Each of the four ESA rulemakings were identified by NAHB as deregulatory priorities in a letter that NAHB sent to OMB in May.
Confidence in the market for new multifamily housing increased year-over- year in the third quarter, according to the Multifamily Market Survey (MMS) released recently by NAHB. The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 46, up six points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 74, down one point year-over-year. The MPI measures builder and developer sentiment about production conditions in the apartment and condo market on a scale of 0 to 100. The MOI measures the multifamily housing industry's perception of occupancies in existing apartments on a scale of 0 to 100. The MPI and MOI are scaled so that a number below 50 indicates that more respondents report conditions are poor than report conditions are good.
Remodeling Gains Market Share As the nation’s housing stock ages and new homes remain out of reach for many buyers, remodeling is capturing a growing share of the residential construction market. NAHB’s recent analysis of 25 years of Quarterly Census of Employment and Wages (QCEW) data suggests that the rise of remodelers is a sustained structural shift rather than a temporary post-pandemic surge. Over the past 25 years, the number of remodeling companies has nearly doubled, from fewer than 69,000 in 2000 to more than 128,000 in the first quarter of 2025.
Multifamily Developer Confidence Increases in Q3
Chamber Hosts Housing Summit In partnership with NAHB, the U.S. Chamber of Commerce on Nov. 6 hosted a daylong housing summit that included discussions featuring industry leaders, members of Congress and others that looked at ways to boost the housing supply. The event spotlighted NAHB-supported policies and initiatives, including Sens. Pete Ricketts (R-Neb.) and Tina Smith (D-Minn.) discussing the ROAD to Housing Act, legislation that recently passed the Senate. In conjunction with the event, the American Enterprise Institute and the Chamber released a report entitled “Strong Foundations: A Playbook for Housing and Economic Growth.”
NAHB Endorses Bipartisan Immigration Reform Bill
Immigration policy is shaping the U.S. labor market as home builders adapt to ever- changing employment eligibi- lity and immigration compli- ance requirements. Now, NAHB has endorsed the Dignity Act, a bipartisan immigration reform bill. The bill aims to modernize America's immigration system by protecting the nation's borders and preserving critical workforces. he Dignity Act would create a new pathway for permanent work author- ization for undocumented workers that meet clear criteria, including: Complying with federal and state laws; Paying back taxes; Completing a comprehensive criminal background check; Beginning to pay income taxes; and Paying an annual restitution fee of $1,000 into a training fund that will develop the next generation of skilled American labor. As the Trump administration ramps up immigration enforcement, NAHB members can use the short publication “When ICE Comes Calling: Best practices for business owners to use during ICE raids” to understand the rights and responsibilities of employers on the jobsite.
AJ Johnson Construction Co. Inc Acrisure Alexandra Edwards of Phillips Insurance Alliance Grounds Services LLC Antcliff Windows & Doors Architectural Glazing Systems, Inc. New member Beth Roman of Carter Kitchen & Bath Ben Staley of Staley Construction Company LLC Bois Insurance Agency Boots Construction Bossman Construction Co LLC Brokaw Group/Brokaw Commercial Builders First Source Brian Christiansen of Staley Construction Company LLC Carbs Contracting LLC NEW Cardinal Roofing Corp. Carter Lumber Company Carter Kitchen & Bath Chuck Thompson Holdings Inc. Church's Insulation CF Legal, PC Construction Management Services LLC Consumers Energy Creekside Hearth Patio & BBQ Davison Overhead Door Co Deborah Sipes of Phillips Insurance Dynamic Home Solutions DF Floor Covering D&M Service Pros
HBA OF MID-MICHIGAN MEMBERSHIP 2025
Forsythe Bros Lawn Services LLC Genesee Ceramic Tile Glendale Construction LLC Grand Legacy Homes Inc. Great Lakes Grills LLC GreenStone Farm Credit Services Gross Construction Harrod Painting Hill Steel & Builders Supply Hodges Supply IL Construction Iversons Lumber Company JW Morgan Construction LLC Kile Sayer of the Stone Specialists Lake & Land Custom Homes LLC Lake Michigan Credit Union LeaSon Builders LLC Linda Leach of Genesee Ceramic Tile Linden Kitchen & Bath Lucas Brothers Construction Lunghamer Ford of Owosso Mark Elasivich of Staley Construction Company LLC Markita Henige of Phillips Insurance Mason Burgess Title Agency Master Seal Asphalt Maintenance Inc. Maurer Heating Co Metamora Building & Development Metcalf Electric Meyer Electric Inc M I Homes NEW Michigan Lumber Company Michigan Propane Commission Midwest C ommercial Construction LLC
Mike Building Co. Modern Concrete NEW PHI Home Services Phillips Insurance Pine Hollow Custom Homes Group Inc. Pinkleman Custom Homes Purves Construction Randal J Cizek Architect Rod Kulhanek Builders LLC Roe Enterprises Shiawassee Economic Development Partnership Signet Residential Inc Sherman Heating and Cooling Shiawassee Chamber of Commerce Staley Construction Company LLC Staley's Plumbing & Heating Inc Stone Specialists Inc Superior Lawn & Landscape Inc Swank Builders Inc Sweers Roofing The Cabinet Gal NEW The State Bank Timothy Elasivich of Staley Construction Company LLC Timbergate Construction LLC Triple H Ideal Contractors LLC Vantage Homes, Inc Vetcon Inc Vets Access LLC NEW Vylla Home Weekes Forest Products Weir Building Company Werth Roofing & Siding Co Wimsatt Building Materials/SRS DIstribution Yeo & Yeo CPA's & Advisors