Michigan Leaders Address Housing Shortage as Affordability Challenges Persist

Alison Rankin | June 4, 2026

LANSING, Michigan- Michigan officials continue efforts to address a statewide housing shortage that housing experts, developers, and state leaders say has contributed to rising home prices and rental costs across the state.

According to the Michigan State Housing Development Authority (MSHDA), Michigan remains short approximately 119,000 housing units. State officials say the shortage affects communities across the state, impacting first-time homebuyers, renters, seniors, and workers seeking housing near their jobs.

Housing affordability remains a frequent topic of discussion among lawmakers, housing advocates, local governments, and state officials as policymakers explore ways to increase housing availability and improve affordability for residents.

Data cited by housing advocates indicates Michigan has approximately 37 affordable and available rental homes for every 100 extremely low-income renter households. Advocates also report that many extremely low-income renters spend more than half of their income on housing and utility costs, placing significant strain on household budgets.

Housing experts and state officials have pointed to several factors contributing to the shortage, including years of reduced home construction following the 2008 housing market downturn, rising construction costs, higher interest rates, demographic shifts, and land-use policies that can affect residential development.

In response, Michigan has invested heavily in housing initiatives through MSHDA programs that support new construction, rehabilitation projects, affordable rental developments, and homeownership opportunities. MSHDA reports investing billions of dollars in housing-related programs in recent years, including approximately $2.61 billion during fiscal year 2025.

State leaders have also discussed potential zoning and land-use reforms intended to encourage additional housing development and streamline the construction process. Supporters argue that increasing housing supply could help improve affordability, while housing advocates continue to emphasize the importance of ensuring future development includes affordable housing options.

Governor Gretchen Whitmer has supported housing initiatives aimed at increasing supply and has proposed a state affordable housing tax credit designed to encourage private investment in affordable housing projects and leverage additional development funding.

Michigan's statewide housing strategy includes goals focused on expanding homeownership opportunities, increasing affordable rental housing, supporting workforce housing, improving housing quality, and reducing homelessness.

Some housing organizations, business groups, and local officials have expressed concern that continued housing shortages could affect workforce recruitment, economic growth, and community development in certain regions of the state. Supporters of expanded housing initiatives argue that increasing housing supply is an important component of long-term economic stability and community well-being.

As policymakers continue evaluating potential solutions, housing affordability and housing supply are expected to remain significant issues across Michigan throughout 2026.

Sources: Michigan State Housing Development Authority (MSHDA), National Low Income Housing Coalition,