House economic committee hears testimony on Michigan housing supply, citing materials, labor and regulations as barriers

The House Committee on Economic Competitiveness heard testimony Thursday on barriers to increasing housing supply in Michigan, with witnesses telling members that shortages of materials, an aging construction workforce and state regulatory processes are constraining new home building.

"My name is Dawn Crandall. I am the EVP of government relations for the Home Builders Association of Michigan," said Dawn Crandall, who told the committee the industry faces three central challenges: materials, labor and regulations. "Time is money in our industry," she added, saying delays and regulatory requirements increase the cost of a new home.

The testimony, delivered by Crandall and Jen Rigtrink of the Michigan Municipal League, summarized statewide data and policy priorities. Crandall cited permit trends and affordability figures: roughly 54,000 single-family permits were pulled in 2005, falling through the late 2000s to about 6,900 at one point; in 2024 there were 15,137 single-family permits pulled and the industry forecast for 2025 was 15,728. She also told lawmakers the median cost of a new home in Michigan in 2025 is about $430,000 and that a qualifying income to purchase at that price is approximately $137,934.

On materials, witnesses described ongoing shortages and price volatility. Crandall said builders reported "a lack of concrete" during the last building season and that tariffs and other policy moves are already affecting bids. She attributed a national estimate for the impact of lumber tariffs of between "$7,500 and $10,000 per home" to studies by the national builders’ association and said vendors have shortened how long a bid price is guaranteed.

Workforce concerns focused on the age of the trade and limits on youth participation. Crandall pointed to licensing data showing far fewer entrants in the 18–34 age group compared with older licensees and said the median age of a builder is about 58. She described a current restriction that prevents under-18 graduates of career-technical education (CTE) programs from using power tools on job sites and discussed pending legislative language that would allow a 17-year-old with an OSHA-10 card, a supervisor over 21 with added training, and the Skill to Build Michigan credential to perform more on-site work.

On regulation and codes, both witnesses urged attention to timing and content of code updates. Crandall said Michigan regulators and the Joint Committee on Administrative Rules (JCAR) were considering whether to adopt the 2021 or 2024 International codes and argued the 2024 code offers more flexibility for meeting energy-efficiency targets via points-based tradeoffs instead of prescriptive requirements. She and Rigtrink cautioned that code changes can add cost: Crandall cited an industry figure that national regulatory costs average about $94,000 per home and noted that features such as sprinkler requirements can add about $20,000 to the cost of a new home.

Rigtrink, representing the Michigan Municipal League, framed housing as a cross-cutting community and economic development issue rather than solely a builder concern. "It's not just a builder issue. It's a community issue. It's a business issue," she said, and described the Housing Michigan Coalition — a partnership of municipalities, builders, chambers and nonprofits formed in 2021 — that advanced four incentive-based bills signed into law in December 2023, including an expansion of Neighborhood Enterprise Zones (NECs) and a change removing the need for state or federal funding as a condition for certain payment-in-lieu-of-tax incentives.

Both witnesses and committee members discussed implementation challenges for state housing incentives, including misaligned timelines between local approvals and state funding commitments, the need to extend sunsets on recently enacted tools (several incentives were noted to sunset in 2027), and the difficulty of converting zoning changes into immediate building activity. Rigtrink highlighted local pilot programs — including a Jackson program using American Rescue Plan funds to offer preapproved home designs and a lot to prospective buyers — as practical models that pair planning with upfront approvals to shorten timelines.

The committee took two routine actions during the hearing. Representative Altman moved to approve the previous committee minutes; the minutes were approved by unanimous consent. Representative Saint Germain moved to excuse absent members; there were no objections and absent members were excused. The committee was then adjourned.

Members asked technical and policy questions during a Q&A, including whether addressing one barrier (for example, regulation) would prompt improvements in others (materials or labor) and whether savings from regulatory reform must be required to be passed through to project affordability. Witnesses suggested multi-pronged approaches — incentives, targeted technical assistance to municipalities, workforce credentialing and prioritized state funding — rather than single-topic fixes.

The hearing record includes requests from members for follow-up on building-permit trends and the status of code adoption at JCAR. No formal bills were voted on during this session; the testimony was presented for informational and legislative-development purposes.