Governor Leads Housing Roundtable as Kent County Faces 34,000 Unit Shortage

GRAND RAPIDS, Mich. — Governor Gretchen Whitmer joined state and federal Democratic lawmakers Monday to address one of Michigan's most pressing challenges: skyrocketing housing costs and limited supply. The roundtable discussion, held at The Seymour — a 2025 condo development by nonprofit developer ICCF Community Homes — brought together housing advocates, developers, and legislators to discuss reform proposals that could reshape housing policy across the state.

The urgency of the situation is clear. Kent County needs an estimated 33,914 housing units by 2029 to meet projected demand, according to a 2025 housing needs assessment by Bowen National Research. U.S. Rep. Hillary Scholten noted that the average entry-level home price in Kent County has risen by about 126%, with starter homes now costing roughly $205,000. That price requires an annual income of about $62,000, while the average income is closer to $42,000 — creating a roughly $20,000 affordability gap.

"The affordability crisis is just crippling the American dream," Scholten said during the roundtable.

The Numbers Behind the Crisis

Governor Whitmer described the housing push as an "all-hands-on-deck" effort, pointing to state and federal work underway to expand housing options. She noted that Michigan's housing stock has grown by 86,000 units in recent years, but significant challenges remain.

"We've got a lot more to do," Whitmer said. "So that's why I wanted to be here and listen."

The governor highlighted two major cost drivers:

• Tariffs have added about $17,000 to the cost of building a home
• The median age of a first-time homebuyer has risen to an all-time high of 40 years

Michigan State Housing Development Authority COO Tim Klont explained the income disparity:

"The cost of housing has increased about 100%, so it's doubled, but average incomes increased about 30%. People, just like simply aren't making enough money to be able to afford the houses we have."

Three-Part Plan to Rebuild Starter Home Market

Ryan Ver Wys, CEO of ICCF Community Homes, outlined a comprehensive three-part approach to rebuilding the starter-home market:

Streamline

Ver Wys said streamlining includes reducing regulatory and policy barriers that slow or prevent construction of smaller, more attainable homes.

Support

Another component focuses on supporting prospective homeowners by helping them navigate credit, financing, and the homeownership process.

Subsidize

Subsidies are necessary, Ver Wys said, noting that high construction costs often push developers toward higher-priced homes. Public incentives such as tax credits are needed to make lower-cost housing financially viable.

"That's a way that we can use the tools that exist now in new and different ways to achieve more housing," Ver Wys said.

State Proposals Aim to Remove Barriers

State Rep. Kristian Grant, D-Grand Rapids, is among a group of bipartisan lawmakers who have introduced a nine-bill package that aims to encourage housing development by reforming zoning laws and reducing red tape.

The bills address several key factors:

• Minimum lot sizes for single-family homes
• Parking requirements of more than one space per home
• Cap on minimum dwelling size requirements at 500 square feet

Grant emphasized that the proposed policies do not eliminate local control:

"What it does is just say that there cannot be complete bans on things like duplexes or that parking cannot absolutely deny a housing project before it even begins. So what it says is we need to start having the conversation and removing some of the largest barriers to housing. But the locals still have input in the process."

Senate Majority Leader Winnie Brinks, D-Grand Rapids, also highlighted efforts to create a Michigan Housing Opportunity Credit. The tax credit would provide about $42 million to help fund an estimated 2,500 additional housing units.

"It's simply a way that provides matching dollars at the state level and allows us to draw down a lot more federal dollars that enable people to get into about 2,500 more housing units," Brinks said.

The Michigan Municipal League opposes the proposed zoning changes. John LaMacchia, director of state and federal affairs at the Michigan Municipal League, said the changes should be decided at the local level, not by state lawmakers.

"We firmly believe local leaders are best positioned to do that, and those decisions should be made closest to the people," LaMacchia said.

Whitmer acknowledged the pushback but remained firm:

"It's understandable. But at the end of the day, it's absolutely undeniable that we need more affordable housing options for people all across the state. It impacts our economy, but most importantly, impacts individual ability to get ahead to live the life that people want to live."

New Apartment Project Brings $4.75M State Loan to West Fulton

While the state considers policy changes, concrete development projects are moving forward. Abode Fulton, LLC has received a performance-based loan up to $4.75 million from the Michigan Strategic Fund (MSF) Board to build 109 apartments on West Fulton, near the Acrisure Amphitheater and Grand Valley's downtown campus.

The project will include:

• Market-rate studio and one-bedroom apartments
• Three commercial suites

Grand Rapids Economic Development Director Sarah Rainero praised the partnership:

"The City of Grand Rapids celebrates the partnership with the MEDC and Construction Simplified to activate an underutilized site through Community Revitalization Program dollars. These state resources are critical to advancing brownfield redevelopment projects and will complement the momentum already underway to bring new amenities to the West Fulton business district. Redeveloping this site will strengthen the City's overall economic vitality, including adding vibrancy to a walkable mixed-use district, where new residents, businesses, and visitors can enjoy this great city."

Brent Gibson, president of Construction Simplified, highlighted the company's commitment:

"As a West Michigan business, Construction Simplified, the developer leading Abode West Fulton, has made a deliberate and continued investment in the Westside corridor we call home, something we believed in long before its current excitement and momentum. We're grateful for the support from the Michigan Strategic Fund, MEDC, and the City of Grand Rapids to help move this vision forward. Abode West Fulton is about adding energy, housing, and walkable retail that contributes to the long-term vitality of a growing and evolving Westside."

In addition to the MSF Board funding, developers are anticipating funding from the City of Grand Rapids in the form of a Neighborhood Enterprise Zone valued at about $2.46 million and a local portion of a Brownfield TIF valued at about $1.14 million.

Broader State and Federal Collaboration

The roundtable also highlighted broader state infrastructure investments. Governor Whitmer announced the MSF Board approved support to update aging infrastructure in the City of Coopersville in Ottawa County, as well as support for an expansion of fairlife, LLC — a subsidiary of The Coca-Cola Company that produces ultra-filtered, lactose-free milk and protein shakes.

With this support, fairlife expects to:

• Invest up to $650 million in its facility
• Create 150 new jobs

Quentin Messer, Jr., CEO of the Michigan Economic Development Corporation and chair of the MSF Board, stated:

"Michigan is open for business and on the move. Today's investment highlights how we're competing hard for transformational projects and good-paying, high-skill jobs. fairlife's investment will create 150 new jobs and power $650 million into west Michigan's economy. This is a huge win for Michigan, and proof that when we work together to improve our infrastructure, train our workers, and revitalize our places, we can compete with anyone."

The roundtable participants also discussed bipartisan legislation at the federal level, though some measures remain stalled due to legislative priorities.

"The president has said he's not going to sign another bill into law until the SAVE Act is passed," Scholten noted.

Despite challenges, the housing roundtable demonstrated renewed commitment from state and federal leaders to address what many consider a defining issue for Michigan's future.