Report says Michigan facing housing shortage

A report says Michigan is facing a housing shortage. // WSBT 22

One group is saying a new report highlighting a housing shortage in Michigan is a "wake up call" for Michigan citizens. Experts say the survey shows middle-class Michiganders are being priced out of the housing market.

That construction slow-down impacts builders, too.

"Since the recession, we just don't have the builders and the financing to be able to build those subdivisions like we used to," said David Kiel, owner of Kiel Construction Inc.

He says single-family homes are in demand, but the rising cost of construction and stricter lending requirements mean there's not enough new places to call home.

"It's hard to build a house under $200,000 in the area, and that's why it's hard to build starter homes in the area,” Kiel said.

It's a stark statistic supported by a report released today by the Home Builders Association of Michigan. It shows the number of new single-family homes is at a historic low in the state.

Now there's less work being done to build single family homes. The MBA estimates over the past 50 years, Michigan has seen an average of 28,000 built annually, but this year they expect that number to only be 16,000.

To change those numbers, the group wants state housing authorities to get involved. It wants local officials to look at land development regulations to make sure they're not putting the price of homes out of reach.

“It's going to take a group effort from the cities, the townships, financial and the builders to work together to try to figure this out so we can have affordable housing for people,” said Kiel.

As of April, the Michigan State Housing Authority reports it's on target for the number of persons newly housed in a single family home.

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