In the pursuit of economic growth and development, one crucial aspect often overlooked is the availability of attainable housing. Housing is a fundamental component that contributes to the overall well-being of a city – it’s the glue that makes Midland a thriving community versus just a pin on a map. Thus, there is an important correlation between job creation and housing development. Yet with rental rates for the City of Midland and Midland County both effectively doubling since 2018, it’s apparent that we are facing a significant challenge in Midland and the broader Great Lakes Bay Region.

Statewide, we are seeing a similar constraint for all Michiganders. Since 2010, Michigan has witnessed a staggering increase in median home values, soaring by 40%, while incomes have only risen by 14% comparatively. This stark contrast underscores a growing housing affordability gap that has left many families struggling to find homes that meet their needs without burdening their monthly budgets.

Recognizing the severity of the issue, Michigan's Statewide Housing Plan was recently introduced, outlining comprehensive goals, strategies, and targets. This plan serves as a roadmap for the state, urging collaboration among stakeholders at the local, regional, and statewide levels.

Despite several challenges, MSHDA has had its most productive year yet in 2023. Governor Whitmer's challenge to surpass these achievements in 2024 underscores the commitment to addressing Michigan's housing crisis. With a goal of $1.4 billion in financing supporting 10,000 units of new and renewed housing, MSHDA is aiming to exceed this ambitious target with the support of local communities and partners.

Getting down to the numbers: Just how much do we need?

As per recent data, Midland has a deficit of 2,800 housing units compared to the number of jobs created over the past decade. This stark contrast demands our attention and prompts us to explore the pressing need for workforce housing in the region.

Further, in the Great Lakes Bay Region, there is a shortfall of over 4,300 housing units that are needed to address the supply shortage in the market that exists today.

The need will ultimately be a moving target, as that covers our current deficit, but does not fuel our growth. With the goal of growing the broader region by 40,000 people by 2040, that translates to a regional need for 30,000 units.

That kind of growth will need to be matched with investments in Missing Middle Housing to support our hard-working neighbors with moderate-density options like duplexes, triplexes, townhouses, small apartment buildings and more. Creating workforce housing with density beyond single-family homes in mind adds to community vibrancy, walkability and spurs other investments while maintaining character and scale.

We're moving to meet this need with projects like Center City Lofts, bringing 55 units of workforce housing to the heart of Midland at a site that's sat vacant for over 20 years.

One key metric that sheds light on the housing need is the number of units permitted per 1,000 jobs created. In essence, this metric illustrates the balance between job opportunities and available housing, a delicate equilibrium that contributes to the overall stability and prosperity of a community. Michigan as a whole, has witnessed growth in this regard over the last decade, signaling positive economic trends. However, the deficit we are seeing in Midland is a clear indication that the local housing market is not keeping pace with the job market, leading to potential consequences for the community at large with home shortages and rising rental rates.

The shortage of workforce housing in Midland means that without more attainable housing options for working families and those starting out in their careers, we cannot grow. When employees struggle to find suitable and reasonably priced housing, it can hinder the recruitment and retention of skilled workers. Businesses may face challenges attracting talent, ultimately impacting their growth potential. The ripple effect extends to the overall economy, with decreased consumer spending and a potential slowdown in local economic development.

Beyond economic ramifications, the lack of workforce housing has profound social consequences. Families and individuals may find themselves in precarious living conditions, struggling to make ends meet due to high housing costs. This can lead to increased stress, less demand experienced at our local businesses, and worst of all – potentially force our neighbors to leave the region. In the long run, a thriving and vibrant community is built on the foundation of stable and attainable housing.

The actions we need:

Addressing the workforce housing gap in Midland requires collaboration between government entities, private sector stakeholders, and community organizations. Some potential actions include:

• Incentivizing Workforce Housing Development: Policies and incentives to encourage the private sector to invest in workforce housing projects can help bridge the gap like the development of Center City Lofts..
• Public-Private Partnerships: Collaboration between public and private entities leads to innovative solutions and shared resources, fostering the development of workforce housing initiatives.
• Pursue Zoning and Regulatory Reforms: Streamlining zoning regulations and reducing bureaucratic barriers can expedite the approval and construction process for housing projects.
• Leverage Incentives and Grant Funds like the Housing Readiness Incentive Program from MSHDA.
• Community Engagement: Involving the community in the planning and decision-making processes ensures that the solutions implemented align with the specific needs and aspirations of the residents.

The current deficit of 2,800 housing units in Midland is not merely a statistic; it represents a challenge that demands our attention and collective action. Workforce housing is not just a matter of bricks and mortar, it is the cornerstone of a thriving, resilient community.

By addressing this housing crisis head-on and implementing proactive solutions, Midland can build a sustainable future where economic growth, social well-being, and community vitality go hand in hand. It's time to invest in the foundations for a bright, growing future.