Total housing permits for the Grand Rapids market are up 16% from one year ago
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W MI defies trend in home construction: woodtv.com
W MI defies trend in home construction
Several local communities booming
Updated: Monday, 28 Mar 2011, 8:20 PM EDT
Published : Monday, 28 Mar 2011, 4:36 PM EDT
- By Anne Schieber
GRAND RAPIDS, Mich. (WOOD) - Last week, the U.S. Commerce department reported a 17% drop in new home sales nationwide, but some West Michigan builders said that's not the case for several local communities.
Total housing permits for the Grand Rapids market are up 16% from one year ago; which may be surprising, considering the inventory of existing homes.
One builder said the boom is happening in a very narrow segment of the market -- communities where buyers are not finding what they want in the $300,000 to $500,000 range.
"They're finding the homes, but needing a lot of work," said Matt McCollum, a builder for Forest Hills Homes. "And I think these people don't want to spend ($30,000) to $50,000 to update the kitchen and flooring, so they are considering building."
Dan Bolt and his wife wanted a strong school district for their 5-year-old daughter. He remembered West Michigan from his time spent at Calvin College, and focused his search on Forest Hills.
But after four months, the Florida man "just couldn't find anything that we liked that didn't need any kind of work inside."
So, the Bolts decided to build.
The family's new home was ready in six months. Forest Hills Homes, the company that built the house, receives many calls from people like the Bolts.
"Things are picking up for us," McCollum said. "So, we're pleased to see that."
New homes are attractive for several reasons, builders said Monday. The price of land has dropped by as much as 40% and labor is about 16% cheaper than several years ago.
The Bolts were unable to sell their Florida home, so for now, they are renting it and were able to do so at a premium. But buying a home new or used isn't for everyone. Experts say it's best for people such as the Bolts, with steady income and long-range plans.
"My wife and I would probably want to go back to Florida when we're older, but definitely want to stay here 15 to 20 years," Dan Bolt said.
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