Major Progress in Reducing Michigan’s Housing Shortage

FOR IMMEDIATE RELEASE 

July 15, 2024

Contact: [email protected]

Gov. Whitmer Announces Major Progress in Reducing Michigan’s Housing Shortage by 50,000 Units, Expanding Access for Michiganders

LANSING, Mich. – Today, Governor Gretchen Whitmer announced that Michigan is making progress to tackle the statewide housing shortage. Thanks to state investment, federal resources, and strong private development, Michigan built or rehabilitated 50,000 housing units, significantly reducing the statewide shortage from 190,000 units to 141,000 units. Work to build more housing will continue thanks to record investments from the Michigan State Housing Development Authority (MSDHA) and resources secured in the recently passed balanced state budget.

“Our record investments to build housing have reduced our statewide shortage by 50,000 units, helping tens of thousands more Michiganders have a safe, affordable place to call home,” said Governor Whitmer. “Together, with our local and statewide partners, we are making the largest investment to build housing in Michigan history so we can expand supply and drive down costs while creating tens of thousands of good-paying jobs along the way. There are more Michiganders working in construction today than any point in the last 22 years. Across the state, pipefitters, carpenters, bricklayers, and roofers are rolling up their sleeves to ‘build, baby, build’ a heck of a lot more housing and ensure every Michigander has a safe, affordable place to call home.”

Population and housing unit estimates are updated annually by the U.S. Census Bureau, most recently in May. Michigan State Housing Development Authority (MSHDA) staff in its Office of Market Research uses the latest Census data to arrive at projections of supply and demand, setting the goal of a 5% vacancy rate to model the conditions of a housing market that’s healthy and balanced.

“This data shows our state is taking steps toward closing the gap and addressing the housing crisis for our neighbors,” said Amy Hovey, CEO and Executive Director of MSHDA. “That’s exactly why we raised the state’s five-year housing goal by 53% last month, in recognition of the significant progress we’ve made, yet acknowledging that we need to do more.”

Current trends indicate Michigan can expect about 20,000 additional housing units per calendar year between now and the end of 2026. However, MSHDA estimates suggest the state is likely to continue to see those trends increase, assuming the state continues to increase investment in housing production.

“The numbers support our position that the state should continue investing more in housing production, with funds that are as flexible as possible,” added Hovey. “This will allow MSHDA to continue to align our resources with the needs that local and regional leaders bring to us through the continued implementation of the Statewide Housing Plan.”

The Census Bureau’s latest revisions show increases to previous years’ data indicating that more housing was added to Michigan’s market than previously thought.