Monday, March 19, 2007

Article in March 17, 2007 Detroit News

Metro home building permits fall 46%

Detroit again tops list; Brownstown, Macomb townships and Warren see strong demand.

Iveory Perkins / The Detroit News

DETROIT -- A report issued by a government planning group Friday bears out what residents already know: The house-building boom has gone bust.

Residential building permits in 2006 are expected to drop 46 percent from the 18,800 issued in 2005 in Metro Detroit, said the Southeast Michigan Council of Regional Governments. The figures are from Oakland, Macomb, Wayne, Livingston, Monroe, St. Clair and Washtenaw counties.

"So many people are being laid off," said Janet Mocadlo, planning analyst for SEMCOG. "Developers won't build new homes if people can't move into them."

For the second year in a row, Detroit was the leader in housing growth, but the city's permits dropped 30 percent from 2005, to 739, according to the report.

"Detroit is still a cool place to live and the area is vibrant for young professionals," said DeAndra Smith, 24, who plans to buy a loft on Jefferson Avenue. "The lofts are trendy."

Macomb Township again was the region's permit runner-up, while Warren and Brownstown Township in southern Wayne County made the top 10 for the first time. Warren was third with 433 permits; Brownstown's 306 ranked fifth.

Warren credits the 1,050-unit Heritage Village project with its ranking, spokesman Joseph Munem said.

"It's a bull's-eye location, its 15 minutes from everywhere and is very accessible," said David Ganz, owner of Winnick Homes, which is developing Heritage Village. "There was a lot of pent up demand, but no new housing."

Matt Allen, press secretary for Mayor Kwame Kilpatrick, said Detroit expects to be a part of the housing growth trend.

"The investment climate is very good right now," Allen said. "There is still a market demand for affordable housing, and we are meeting that."

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