In the face of rising housing costs and attainability as a hindrance to economic growth, the Great Lakes Bay Regional Alliance and several local partners, including Housing Forward, recently came together to address this critical issue at the Great Lakes Bay Region Housing Summit on January 26 at Saginaw Valley State University. Approximately 250 stakeholders from various sectors gathered to discuss and share innovative solutions around why workforce housing is one of the top factors in regional growth and why it should be a priority for everyone.
The summit addressed this through a multifaceted and collaborative approach by bringing together policymakers, housing advocates, developers, community leaders, and residents. The event was the first step in creating a platform for diverse perspectives and ideas on how housing can move the region forward.
“The genesis for the summit came as we traveled around the region talking to our community leaders at the various chambers of commerce, foundations and the economic development organizations,” said Ken Horn, executive vice president of Strategic Development with the Great Lakes Bay Regional Alliance. We started looking at the largest development factors as part of Operation 40K, which is an effort to grow the region by 40,000 people by 2040.” “It’s an aggressive goal and one that we will have to tackle together. There are a number of important topics that we have to address in order to meet it, including housing, childcare, transportation, and more,” added Horn. “Housing by far stood out as the most important factor, because we won’t be able to attract new residents and employers if there are no places for people to live.”
The summit included steps being taken by stakeholders in each county and future plans for making an impact in addressing housing availability.
One topic addressed was that the historical version of the ‘traditional’ American household is outdated, yet the majority of the community’s housing supply is geared toward traditional nuclear families. Data from AARP shows that 80% of American households are not traditional nuclear families, such as those made up of single parents raising children, extended families sharing a home, single people or adults living together with a roommate, among other examples. There is a significant need for more ‘Missing Middle’ and multifamily units to satisfy these needs, like people who may prefer a condo with less maintenance or more housing options for people just starting out in their career.
The rising cost of rental pricing in Midland County is also something that will continue to put pressure on or deter current and potential residents.
“The MSHDA Data Portal has been helpful in revealing some of the issues we’re seeing. In Midland we've been looking for the appropriate data, especially as we recover from the flood and the loss of housing units,’ said Jenifer Acosta, local lead for Housing Forward. “What we’ve seen in the data is that rental rates in Midland County have doubled in five years. We have gone from Midland County and the City of Midland having median rental rates at $746 and $754 respectively, up to over $1,400 and $1,500 a month.”
“For comparison, our leadership committee looked at the City of Holland and at the data level, Midland is very similar to Holland in many ways. One of the key differentiators was their rental rates have only gone up 30% because they've added units as they've gone and built appropriately for their workforce,” added Acosta. “They have a bit more economic diversity, and when we talk about housing as a product, that is something that has helped Holland have a more robust and diverse workforce because they are not over-invested in one industry or housing product.”
Another key metric is the number of unit's permitted per 1,000 jobs created, and looking at the number of units over the last 10 years, Michigan has grown, while Midland in comparison has a deficit of 2,800 units.
Acosta and Housing Forward highlighted that in order to effectively invest in a community’s housing base, it involves five key factors: land, lumber, labor, laws and loans.
“As a developer some of the biggest impacts can be made with our laws at the local, state and federal level,” she noted. “We’re here to advocate for the appropriate policies to encourage investment in our communities.”
Data aside, the intangible fact is that housing is at the crux of community development and growth, because if people are unable to find a housing solution within their budget in their community they may wind up moving to a neighboring community and commuting for work. Lacking a stable home, there is a greater chance residents will not find a sense of place and belonging, making them much more likely to move elsewhere.
The event also included keynote remarks delivered by Amy Hovey, the executive director of the Michigan State Housing Development Authority, and a panel discussion featuring housing experts from around the state on topics such as housing policy, financing options, sustainable development practices, community engagement and more.
Hovey reinforced some of the factors contributing to the state’s need for more housing including the decrease in the average number of people per household, leading to the need for more housing despite some of the flat population statistics, the demand for second homes within the state near bodies of water, and the mismatch of housing options in certain areas.
Hovey equated the region’s growth goals to what we are lacking in housing units to support that goal.
"The region is short by about 4,000 units currently for your existing population and with a goal for attracting another 40,000 people, that will require another 30,000 units to support that growth,” she noted.
She also equated all of the regional and state goals for addressing issues in job growth, childcare, educational attainment and physical and mental health back to housing.
“We need to make sure that our local decision makers understand the housing crisis and how to remedy it when projects come before them for approval,” added Hovey on the importance of community buy-in. “We need the broad understanding that approval for Missing Middle projects means that ultimately healthcare workers, teachers, law enforcement and many other professions can find suitable housing options.”
Importantly, Hovey reinforced the need for collaboration and the non-partisan nature of housing and the need to pass current funding efforts.
“Ultimately, housing is not a political issue. I want to be able to use the $50 million from the Housing Community Development Fund to fund projects that address some of these issues. It passed the legislature and is currently with the House in Michigan,” emphasized Hovey. “That funding is critical to help fund the different housing plans from around the state, and without approval we can’t utilize those funds. I never miss an opportunity to say that I’ve worked in and understand politics, and this should not be a political issue.