Michigan on track to reduce housing shortage by 2027

(The Center Square) – Michigan leaders say the state is on track to reach its housing development goal by 2027.

Gov. Gretchen Whitmer created a Statewide Housing Plan in 2022 to build 115,000 housing units over the next five years to reduce the state’s housing shortage. Now, halfway through the program, Michigan has built or rehabilitated 50,000 housing units, placing the state on par for the next two years.

The state’s housing shortage, since implementing the program, has gone from 190,000 to 141,000 units, according to a news release from Whitmer's office. The state recently increased its goal by 53%. Originally, the plan was to build or renovate 75,000 homes by the fall of 2026. Whitmer introduced the new plan at the Mackinac Policy Conference last month.

“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 the Michigan State Housing Development Authority. “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.”

While the state expects about 20,000 new units per year, that number may incrementally increase as construction teams grow and state investments increase. According to Whitmer, U.S. Census Bureau data suggests the state might see compounded growth in the housing market over the next few years.

“The numbers support our position that the state should continue investing more in housing production, with funds that are as flexible as possible,” Hovey said. “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.”

During her 2024 State of the State Address, Whitmer announced a record $1.4 billion investment in building and rehabilitating Michigan homes. In addition, a bipartisan $275 million bill was passed in 2023 to fix abandoned homes and fight neighborhood blight.