Detroit, MI
New home demand, construction soften in Metro Detroit amid high rates
Interest rates, geopolitical issues, slowing homes sales, builder says
Darian Neubecker, president of Bloomfield Hills-based Robertson Brothers Homes, said he’s seeing signs of slower buyer demand.
Buyers are still shopping for newly built homes in Metro Detroit, but fewer are moving quickly to sign contracts as higher borrowing costs pressure household budgets.
That’s what Darian Neubecker, president of Bloomfield Hills-based Robertson Brothers Homes, is seeing across the company’s communities. While potential buyers continue to research the homebuilding process, website traffic and in-person visits have declined from a year ago.
“There are certainly folks doing homework on buying,” Neubecker said. “I think as soon as we see relief on interest rates, we’ll see sales activity pick back up.”
Neubecker attributed the slowdown to temporary factors, such as higher mortgage rates amid geopolitical factors, including the U.S.-Israel war with Iran. And those factors are impacting new home activity.
Builders pulled 931 single-family permits across Macomb, Monroe, Oakland, St. Clair and Wayne counties through April, marking the second-slowest start to a year since 2012, according to the Home Builders Association of Southeastern Michigan.
In April, builders pulled 310 single-family permits across the five-county region, down 18.4% from 380 permits a year earlier. The decline was led by Wayne County, where permits fell 30.2%, while Oakland County permits dropped 16.5% and Macomb County permits fell 12.1%.
One bright spot: April activity was up slightly from March, when builders pulled 302 permits. While the need for housing remains strong, higher mortgage rates and home prices have reduced affordability and caused some prospective buyers to delay purchasing decisions, economists say.
Mortgage rates remain elevated, with a 30-year fixed loan averaging around 6.5% in recent Freddie Mac data.
“Everybody’s basically waiting to see what happens to mortgage rates, and they have been like on a seesaw,” said Daniil Manaenkov, U.S. forecasting specialist for the University of Michigan’s Department of Economics. “So you would get some improvements, it would start edging down, but then something would happen, and rates would edge back up.”
Manaenkov said housing activity today more closely resembles pre-pandemic levels than the market after COVID-19, when low borrowing costs fueled demand and construction.
The market has softened, though it’s relatively stable rather than severely depressed, Manaenkov said.
Market’s ‘one-two punch’
One recent morning, Neubecker stood inside a two-bedroom townhome under construction at the Scripps District development along Trumbull Avenue in Detroit’s Woodbridge neighborhood.
As crews worked throughout the partially finished development, he spoke of the property’s features and the state of the homebuilding market. The project includes 65 two-bedroom townhomes priced from the upper $300,000s. Construction began about two years ago and is expected to be completed in 2027.
Neubecker said it has been one of Robertson Brothers Homes’ strongest-selling communities, outperforming the company’s other southeast Michigan developments during its early months on the market.
The company has about 100 homes under construction across southeast Michigan, and he estimates sales are down between 15-20%. Some of the other communities in Metro Detroit have seen a slowdown in sales, including developments in Troy and Lyon Township.
He said recent softness in buyer demand is showing up in early-stage sales data and could mean lower permit activity in the near future, Neubecker said: “Sales is always a three- to six-month leading indicator of permit activity.”
He expects the slowdown to be temporary. “Long term, not worried; medium term, not worried,” he said. “Short term, I would classify it as a nuisance more than anything.”
Vito Castellana, owner of V.I.P Homes & Development, said the most significant slowdown is occurring at the entry-level segment of the market, where affordability is the toughest.
In Burton near Flint, he said the company is building 1,500-square-foot single-story condos priced in the high $200,000s and 2,000-square-foot two-story colonials priced in the low $300,000s. Among the company’s other projects are seven single-family homes in Sterling Heights, ranging from 2,600 square feet to 4,000 square feet with three-car garages priced in the $800,000s.
Castellana said many potential buyers are pausing due to current mortgage rates and the desire not to lose the low rates they have on their present homes.
“The market is a little bit slower than what we’re used to, given costs and given interest rates, so it’s kind of a one-two punch right now,” he said. “So it’s not as robust as we’re used to seeing in previous … spring to summer markets.”
Vito said that has changed the broader housing mix for his company, which is putting more emphasis on multifamily and rental housing as buyers prioritize flexibility.
He said construction costs have also impacted housing prices, noting long-term increases in land and development expenses. For example, the home pricing in Burton starting in the high $200,000s is possible because the company purchased the land about 10 years ago, he said.
“If you had to go develop and put those lots in (now), it might cost tenfold of what we paid for them,” he said. “And this is just hypothetically speaking, like, if I sold that house for $320,000 last week, if we had to put the lots in and put the improvements in, like in current market rate, it could probably potentially be — that $320,000 could be a $420,000 home.”
Joel Berner, senior economist at Realtor.com, said that in the Northeast and Midwest markets, including Detroit, the focus is on higher-priced homes that better accommodate cost constraints.
“New construction has been expensive,” he said. “It’s really kind of operated as a luxury product, hasn’t really competed with existing homes on price so much.”
Berner also pointed to a tight market for skilled labor, rising material costs and the challenges of urban infill development as factors that make it hard to offer lower-priced homes in places like Michigan.
‘Consistent level of activity’
Despite the ups and downs, some buyers are still in the market.
Lucy Kollin, 50, of Troy is building a four-bedroom home in Robertson Brothers Homes’ Village at Clawson Park development. It’s been a two-year research process, she said.
Kollin, a real estate agent, previously lived in a Robertson-built condo and wanted another new build close to downtown Birmingham.
She decided to purchase a 2,400-square-foot single-family home with a base price of $600,000. She expects the house to be finished by the end of August.
“If you want something, keep looking,” she said. “Don’t give up.”
The overall slowdown in permits has not brought construction activity to a complete halt. Michele Chirco, general counsel for home-builder MJC Companies, said sales have remained largely in line with last year for his company.
“We’re still seeing pretty consistent level of activity,” he said. “Doesn’t really feel too much different than what we’ve seen through most of last year.”
Affordability continues to limit how much builders can raise prices, he said, while material and labor costs have become more predictable after years of pandemic-era supply disruptions and tariff-related uncertainty.
MJC Companies has about 20 speculative single-family homes under construction that have not yet been sold, Chirco said, and about 60 homes under contract across its communities.
“We have probably a larger percentage of homes that we start as spec homes,” he said. “We tend to keep maybe three to five homes within a community that we start without a buyer, just to make that decision and that process easier for anybody looking for new construction.”
Shanta Favors, 43, lives in MJC Companies’ Cypress Gardens subdivision in Taylor. She says she has watched new phases of construction fill in around her home.
“I do like the fact that it’s a community, a whole community,” she said, describing how the subdivision has grown into a fuller neighborhood over time, even as affordability has become more difficult for new buyers.
Favors, a disability advocate, purchased her home in 2020 for $301,000 after customizations designed to make things accessible for her wheelchair use. She figures her home is valued at about $500,000 now.
“There are people still buying in this subdivision,” she said.
cwilliams@detroitnews.com
Detroit, MI
Power outage forces flaring at Marathon’s Detroit refinery; portion of Schaefer Road closed
Southwest Detroit – A power outage at Marathon’s Detroit refinery has led to operating conditions that made flaring necessary, the company said Sunday.
Flares are safety devices that allow for the safe combustion of excess gases under certain operating conditions, according to Marathon.
Refinery personnel are conducting off-site air monitoring, the company said.
As a precaution, a section of Schaefer Road from I-75 to Dix Road is closed. Local law enforcement is managing the closure.
Marathon said the company’s top priorities are the safety of employees, responders and the community, as well as limiting any environmental impact.
Detroit Mayor Mary Sheffield said her administration is monitoring the situation closely.
“EGLE (the Michigan Department of Environment, Great Lakes, and Energy) and refinery personnel are conducting air quality monitoring both on-site and in the surrounding neighborhoods. At this time, monitoring has not detected gas readings of concern,” the statement said.
Local 4 reached out to EGLE and a spokesperson said the agency is sending all media inquiries to the city of Detroit.
Copyright 2026 by WDIV ClickOnDetroit – All rights reserved.
Detroit, MI
Mallory McMorrow drops out of Michigan’s US Senate race
State Sen. Mallory McMorrow has dropped out of the race for the Democratic nomination for Michigan’s open U.S. Senate seat, ceding the field to former Wayne County and Detroit health director Abdul El-Sayed and U.S. Rep. Haley Stevens with just over four weeks to go until the Aug. 4 primary.
McMorrow told the Free Press on Sunday, July 5, she was suspending her campaign. She said she had hoped that voters would support a candidate who combined El-Sayed’ progressivism and Stevens’ policy background but that path has been largely closed off by considerable outside spending — tens of millions of it benefitting Stevens — in the race.
She did not endorse one of the other candidates in the race, at least not in the immediate aftermath of her decision.
In a three-minute video she posted at 1:40 p.m. Sunday on social media platform X, McMorrow confirmed her decision to suspend her campaign, saying she was doing so with a “deep sense of gratitude” to her supporters and campaign workers; her husband, Ray Wert; and their 5-year-old daughter, Noa, who McMorrow said reminded her recently, “‘It’s not about if you win, it’s about trying hard and having fun.’ She’s right.”
“People are crying out for change and we need to listen,” McMorrow said. “Whoever wins this primary on Aug. 4th will have my full support… Let’s elect Democrats up and down the ticket and show the rest of the country what it means to fight like Michigan.”
McMorrow, of Royal Oak, leaves the race after being the first big-name Democrat to run to replace retiring U.S. Sen. Gary Peters and having raised more than $8.6 million by the end of the last campaign finance reporting period at the end of March. The winner of the Democratic primary will face Republican Mike Rogers, a former U.S. representative, of White Lake, who lost a U.S. Senate race in Michigan two years ago to Democrat Elissa Slotkin bu 19,006 votes, or about three-tenths of 1 percentage point.
Her departure, however, comes after absentee ballots have already been mailed out to some voters and too late to remove her name from the primary ballot. Voters who have already submitted their absentee ballots can contact their local clerks, ask to spoil their ballots and request a new one until 5 p.m. Friday, July 24.
Throughout her campaign, McMorrow — who toppled a Republican state senator in 2018 and became an internet sensation after speech of hers bashing a Republican colleague who accused her and other Democrats of grooming and sexualizing children went viral — displayed a ready ebullience, meeting with voters at local breweries. But she never got the opportunity to show the fire she had in that speech on the Senate floor in 2022 and was likely hurt by revelations that she had deleted old posts on Twitter/X in which she criticized her adopted state, though others said the reaction to that was blown out of proportion.
While she challenged for or was in the lead in some polls earlier in the year, more recent surveys have showed her dropping back considerably as El-Sayed, running as the progressive standard-bearer, and Stevens, a more moderate candidate with support from the Democratic establishment and Senate Minority Leader Chuck Schumer, moved to the front in recent polling averages.
In late June, the Wall Street Journal cited sources saying that Peters, a close ally of Schumer’s but who had not publicly endorsed a Democratic candidate in the race to replace him, had told associates that McMorrow needed to consider leaving the race so Democrats could coalesce around Stevens to face El-Sayed, who has been criticized in the past for campaigning with an internet influencer, Hasan Piker, who critics say has made antisemitic remarks.
Then there was the outside spending, which has piled up enormously in recent weeks. Punchbowl News, a respected journalism site in Washington, wrote July 3 that a $30 million “avalanche” in ads benefitting Stevens had been booked by outside groups before McMorrow had begun to spend heavily on broadcast TV. At least one of those ads, as the Free Press reported Friday, stretched its facts in making attacks on El-Sayed.
While Stevens has called for election reform in Congress she has characterized the outside help she has received as in line with legal standards and not questioned its propriety.
But it was far from clear immediately whether McMorrow’s departure would be enough to bump El-Sayed, of Ann Arbor, out of the lead. Recent polling averages have shown McMorrow’s support in single digits and Stevens may need all of that to catch El-Sayed if those are correct.
Stevens’ level of support from staunchly pro-Israel groups, including the American-Israel Public Affairs Group (AIPAC), which also supports Republican candidates who have voted to maintain U.S. support for Israel, has also been controversial. Many Democrats have voiced skepticism of whether the U.S. should continue to give Israel the support it has given its prosecution of its war against Hamas in Gaza.
Without question, however, McMorrow’s leaving the race makes the choice a binary one for Democrats still on the fence a month before the election — which may help Stevens most since it’s presumed that El-Sayed’s supporters are already largely on board with a campaign that has been surging for months now. But predictions about El-Sayed’s levels of support topping out have been wrong before in this campaign.
El-Sayed released a statement praising McMorrow’s campaign and saying she “showed what it looks like to fight back against a politics that rigs the system against too many of us.” He then welcomed McMorrow’s supporters “to our movement to stand up against money in politics, to put money back in pockets and pass Medicare for All. We cannot allow the establishment to decide our nominee for us.”
“The same party insiders she had the courage to challenge have been bullying anyone who opposes their chosen candidate,” El-Sayed said. “After spending $30 million to drown Senator McMorrow and me out, they’re now spending even more to attack me. It’s everything we are standing up against.”
Stevens also spoke warmly about McMorrow’s effort in the campaign, though she made less of a direct pitch to McMorrow’s supporters.
“Anyone who raises their hand to serve the people of Michigan and puts forward thoughtful ideas for how they would lead earns my respect,” said Stevens, of Birmingham. “Mallory McMorrow has been an important voice, both in this race and in the state Senate, for policies that benefit Michigan’s children and families, and I look forward to working with her in the future to build a stronger Michigan for everyone.”
“As we enter the final month of the primary election, I’m excited to continue to make my case to Michiganders why I’m the strongest Democrat to defeat Mike Rogers this November, lower costs, protect manufacturing jobs, and stand up to Trump’s abuses of power,” she said.
Greg Manz, a spokesman for the state Republican Party, characterized McMorrow’s leaving the campaign as going from “a three-car pileup to a head-on collision.”
“Whoever survives the messy Democrat primary will be held accountable at the ballot box this November for turning their backs on Michigan’s working families — Mike Rogers will beat whoever emerges from their chaotic primary,” he said.
Hunter Lovell, spokesman for the Republican National Committee, said “McMorrow’s exit is the latest example of the socialist takeover. While Abdul El-Sayed and Haley Stevens tear each other apart, President Trump and Mike Rogers are delivering tax cuts and safer communities.”
Contact Todd Spangler: tspangler@freepress.com. Follow him on X @tsspangler.
This story has been updated with additional information.
Detroit, MI
Storm chances linger into the start of the week across Metro Detroit
4Warn Weather – A low pressure system moving into the Ohio Valley will bring Southeast Michigan rain chances Sunday and Monday. Rain will be scattered, not an all day event, but you’ll want to have a way to get alerts, especially if you’ll be outdoors.
Tonight temperatures will be a bit more seasonable – good news for those still without power after Friday’s storms. This evening will be comfortable. Most fireworks shows should be ok as rain will be isolated.
Overnight lows will be in the low to mid 60s with a light northeast breeze.
The chance for scattered rain will stay in the forecast tomorrow morning.
On and off rain, and possible thunderstorms, will carry throughout the day Sunday, lingering into the evening hours.
Highs tomorrow will be in the low 80s, and we’ll see more of the same Monday.
Scattered rain and storms are possible into the midday hours Monday before we look to dry out.
Tuesday and Wednesday will feature mostly sunny skies and slightly warmer temperatures, reaching the mid to upper 80s.
The next chance of rain moves in Thursday.
Copyright 2026 by WDIV ClickOnDetroit – All rights reserved.
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