The Shift in Michigan’s Housing Narrative: From Surplus to Shortage

The Shift in Michigan’s Housing Narrative

For many years, discussions among Michigan’s politicians regarding the state’s housing crisis predominantly centered around a surplus of properties. These were often dilapidated houses, stripped of valuable materials like copper, lying vacant and contributing to the decay of neighborhoods. However, the narrative has dramatically shifted in recent times. In her recent State of the State address, Governor Gretchen Whitmer highlighted the pressing housing shortage, capturing attention with her powerful statement: “The rent is too damn high, and we don’t have enough damn housing. So our response is simple: ‘Build, baby, build!”

To truly understand the housing crisis facing middle-income Americans in 2024, one could look closely at Michigan. The transition from surplus to shortage in this state serves as a microcosm of the broader challenges that the entire nation has experienced. Over the course of my two-decade career writing about housing and the economy, I have observed the U.S. housing market evolve through phases of boom, bust, and now a significant deficit—often without experiencing a stable middle ground.

Several factors contribute to this troubling trend, but they can largely be traced back to a pivotal event: the housing bust of the late 2000s, from which the nation has yet to fully recover. As Ali Wolf, chief economist at Zonda, a prominent data and consulting firm, aptly noted, “The Great Recession broke the U.S. housing market.”

Initially, the surge in housing costs appeared to be a localized issue. It was understandable that cities like San Francisco, already known for their high living expenses and populated by well-compensated tech workers, faced severe housing crises exacerbated by stringent building regulations. However, much of the rest of the country remained relatively affordable, leading many to view these high-cost “superstar cities” as isolated cases rather than indicators of a national trend.

Yet today, the housing challenges experienced in California have spread across the nation. Double-income families with stable jobs are increasingly finding themselves priced out of homeownership in areas like Spokane, Washington. Meanwhile, homeless encampments have become a common sight in cities such as Phoenix. Even in Kalamazoo, residents lament that “the rent is too damn high.”

The housing crisis has transcended political boundaries, affecting both blue states and red states, as well as sprawling metropolitan areas and small rural towns. In an era marked by extreme political polarization, the high cost of housing and the myriad social issues it creates have emerged as shared concerns for many Americans. This collective frustration underscores a growing outrage over the nation’s apparent inability to address and rectify these pressing challenges.