# Michigan

### Summary

Michigan state is facing an acute affordable housing crisis. For every 100 low-income renter households, there are 55 units available that are affordable to them. The median rent in the state has risen by 31% since 2010, while median household incomes have grown by 45%. Currently, the state is short over 127,895 low-income housing units, meaning rental units that are affordable to households earning ≤60% of AMI.

#### Key Statistics
- **27.8%** share of renter households
- **40.6%** share of low-income households
- **44.9%** share of rent-burdened households

### Renter Population Data

#### Households
| Type                 | Households | % Share  |
|----------------------|------------|----------|
| Renter households     | 1,106,036  | 27.8%    |
| Homeowner households   | 2,870,693  | 72.2%    |
| **Total households**  | **3,976,729** | **100.0%** |

#### Low-Income Renter Households
| Income Group         | Households | % Share  |
|----------------------|------------|----------|
| Extremely low-income (≤30% AMI)     | 155,918  | 14.1%    |
| Very low-income (31-50% AMI)        | 125,942  | 11.4%    |
| Low-income (51-80% AMI)              | 166,819  | 15.1%    |
| **All low-income households (<80% AMI)** | **448,679** | **40.6%** |

#### Rent-Burdened Households
| Burden Level       | Households | % Share  |
|---------------------|------------|----------|
| Moderately rent-burdened | 240,212  | 21.7%    |
| 30.0–34.9%          | 89,811    | 8.1%     |
| 35.0–39.9%          | 62,313    | 5.6%     |
| 40.0-49.9%          | 88,088    | 8.0%     |
| Severely rent-burdened | 255,989  | 23.1%    |
| **Total rent-burdened households** | **496,201** | **44.9%** |

### Affordable Housing Shortage

#### Rent vs. Median Household Income

| Year   | Median Household Income ($) | Median Rent ($) |
|--------|------------------------------|------------------|
| 2010   | 25,003                       | 595              |
| 2021   | 36,257                       | 779              |
| Increase (2010–2021) | 45.0%                     | 30.9%            |

#### Affordable Housing Stock
|        | Units         |
|--------|---------------|
| Supply (current stock) | 153,965     |
| Demand (total units needed) | 281,860     |
| Shortage                | 127,895     |
| **Supply/Demand Ratio** | 54.6%      |

### Michigan State Housing Development Authority

#### Michigan State Housing Development Authority
735 E Michigan Avenue
Lansing, MI 48912-1474

#### List of Loan Programs
- [Low Income Housing Tax Credits (LIHTC)](https://www.michigan.gov/mshda/developers/low-income-housing-tax-credits-lihtc)
- [Direct Lending Cap Financing Program](https://www.michigan.gov/mshda/-/media/Project/Websites/mshda/developers/htf/Program-Guidelines---Direct-Lending-Gap-Funding-5232023-FINAL-jh.docx?rev=199013ec259140bebb0386b7e2dc1b0a&hash=A15368276133B23A7F867C150DC5D667)
- [Reduced-Rate Fast-Track Loan Pilot Program](https://www.michigan.gov/mshda/-/media/Project/Websites/mshda/developers/assets/mfdlp/RRFT-Pilot-Program.docx?rev=37caee82a699418c932b7705df01ddea&hash=D826F75F25A83E0B3C7D4BFC3F22ABE2)
- [Equity Bridge Loan](https://www.michigan.gov/mshda/-/media/Project/Websites/mshda/developers/assets/Folder2/MSHDAEBLprogramstatement.pdf?rev=fb2e78e40ad845fa8884d5589e003038&hash=708290C54CC908446D3FCFC60A15A7DF)

### Housing News

#### 1. How Fed Rate Cuts Impact the Housing Market
- **Key Takeaways**:  
  - Fed rate cuts have reduced the average 30-year mortgage rate to around 6.2% from a peak of 7.79%.  
  - As rates decline, more homeowners might be encouraged to sell, yet a full recovery is expected to be gradual.  
  - Supply shortages will persist due to zoning restrictions and labor/material shortages.  
  - Broader structural challenges remain, particularly regarding the lack of new housing supply.

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#### 2. Priced Out of Housing, Communities Take Development Into Their Own Hands
In Traverse City, Michigan, **Commongrounds** was created to offer affordable living and business spaces through a community-funded project.

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#### 3. Housing Market Won’t Come ‘Unstuck’ Until 2026
Bank of America economists predict a long recovery ahead for the market, with significant barriers still in place.

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#### 4. States With the Largest Homeless Populations
In 2023, the U.S. saw around 653,000 homeless individuals, reflecting a substantial rise since 2020.

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#### 5. The Homebuying Affordability Gap is Widening
The national affordability gap has hit a 10-year high, with barely 63% of counties affordable for median-income households.

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#### 6. Record High Housing Affordability Issues
50% of U.S. renters are facing affordability issues, exacerbated by rising rent costs and insufficient affordable housing options.

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#### 7. The Hottest Trend in U.S. Cities?
Cities are pushing forward with zoning rule changes aimed at expanding housing development, addressing the ongoing housing crisis.