Grand Rapids Roundtable Addresses Severe Michigan Housing Crisis

GRAND RAPIDS, MI - Governor Gretchen Whitmer brought together state and federal lawmakers, community advocates, and housing stakeholders Monday to address Michigan's severe housing shortage and rising costs in a roundtable discussion focused on one of the state's top policy priorities.

The Michigan State Housing Development Authority reports the state faces a shortage of 119,000 housing units, with affordability remaining a critical challenge across Kent County and the broader Grand Rapids area.

Housing Crisis Deepens as Entry-Level Prices Surge

Representative Kristian Grant, D-Grand Rapids, opened the discussion by asking what happens if the state doesn't act quickly to address the housing supply shortfall. The question came as entry-level home prices have surged by approximately 126 percent, leaving many residents financially overburdened.

"Entry-level home prices have surged by approximately 126 percent, leaving many residents over-burdened as the average income fails to keep pace with the $205,000 cost of a starter home," said U.S. Representative Hillary Scholten, D-Grand Rapids.

The average Michigan home now costs $205,000, yet average income growth has barely kept pace with inflation. According to the Michigan State Housing Development Authority, housing costs have increased by about 100 percent while average incomes have risen only about 30 percent.

"The cost of housing has increased about 100 percent, so it's doubled, but average incomes have increased about 30 percent. People simply aren't making enough money to be able to afford the houses we have," said Tim Klont, COO of the Michigan State Housing Development Authority.

Proposed Solutions Focus on Zoning Reform and Tax Relief

State lawmakers are considering bipartisan legislation aimed at streamlining local zoning regulations and promoting affordable housing development. The package would establish more uniform statewide zoning policies, including minimum home and property lot sizes designed to encourage affordable housing construction.

"What it does is just say that there cannot be complete bans on duplexes or that parking cannot absolutely deny a housing project before it even begins," said Representative Kristian Grant, D-Grand Rapids.

The legislation enjoys the support of Governor Whitmer, who called for similar policies during her State of the State address earlier this year. Governor Whitmer emphasized her administration has already reduced the housing shortage by 84,000 units through various initiatives.

"We know there will be conversations going on, but I put a plan on the table that actually gives seniors real property tax relief and confers additional tax benefits to people trying to get into the housing market," said Governor Gretchen Whitmer.

Federal Barriers Complicate Housing Solutions

Despite state-level progress, federal policy remains a significant obstacle. President Donald Trump has threatened to block all bills until Congress passes the SAVE Act, which would require documentary proof of citizenship to vote. Voting rights advocates worry this could make it harder for some residents to participate in the democratic process.

"The president has said he's not going to sign another bill into law until the SAVE Act is passed. Not to get overly political, but there are political reasons that are driving up the cost of housing right now, too," said Representative Hillary Scholten.

Representative Scholten highlighted the 21st Century Road to Housing Act as an example of what's possible when all sides work together. The bill is close to passing Congress but faces potential challenges at the White House.

Local Concerns About State Control

The roundtable also addressed concerns from local officials about state-level policy making. Paul Sachs, director of the Ottawa County Department of Strategic Impact, expressed worry that state reforms could create a top-down approach that rushes projects without proper planning and community input.

"It takes away local control. That's really difficult from a boots on the ground person who works with our local units. There's different ways we can move the needle without creating unnecessary consternation," said Paul Sachs, director of the Ottawa County Department of Strategic Impact.

Governor Whitmer responded by emphasizing that the proposed changes would encourage more business and help keep residents in the state.

"It's understandable. We're talking about some change, and with change, there's always going to be questions, but at the end of the day, it's absolutely undeniable that we need more affordable housing options for people all across the state," said Governor Whitmer.

Community Voices on Housing Challenges

Community members at the roundtable shared their personal experiences with housing difficulties. Devetta Blakely, a board member at ICCF, spoke about the systemic barriers families face.

"It's not that we don't want better or we want to do better, it's just sometimes the odds are against us to do that. So we just need a little more help," said Devetta Blakely, board member at ICCF.

Senate Majority Leader Winnie Brinks, D-Grand Rapids, noted that the final proposals could depend on available budget resources. She mentioned yet-to-be-introduced bills aimed at leveraging federal tax resources to encourage more development.

"We do have these other tools available to us, we could tweak, we could change, we could negotiate around those bill packages if we want to provide tax relief. But really that's a bigger question, it's not just about housing, it's also about the state budget," said Senate Majority Leader Winnie Brinks.

Broader Economic Factors Impact Housing Costs

The discussion also touched on economic factors beyond housing policy. Representative Scholten pointed to tariffs and rising gas prices as additional cost drivers that state and federal policy cannot easily control.

"A person in Lansing, whether you're the governor or a state senator, can't undo the tariff chaos that's coming out of Washington, DC, can't unilaterally prevent decisions that are impacting international gas prices. But what we can do is deliver some relief to folks," said Governor Whitmer.

Path Forward

The roundtable concluded with commitments from state and federal lawmakers to continue working on housing solutions. The Michigan Senate is considering expanding access to the homestead property tax credit to help cover property taxes for qualifying residents.

Representative Grant emphasized the need for continued dialogue on removing barriers to housing development.

"We need to start having the conversation and removing some of the largest barriers to housing," said Representative Kristian Grant, D-Grand Rapids.

The discussion set the stage for continued legislative work on zoning reform, property tax relief, and affordable housing development across Kent County and throughout Michigan.