Michigan Still Faces Major Housing Deficit Despite State Investment

LANSING — Michigan continues to face a significant housing shortfall despite recent progress under Governor Gretchen Whitmer's administration. While the state has built more than 12,000 affordable homes across Detroit since 2019, officials say Michigan still needs to build approximately 119,000 additional units to meet current population needs.

On March 31, 2026, Governor Whitmer announced two new redevelopment projects receiving support from the bipartisan Revitalization and Placemaking (RAP) program, creating opportunities for housing and commercial space in Grand Rapids and Saline.

New RAP Grants Announced for Grand Rapids and Saline

The RAP program provides access to gap financing for place-based infrastructure development and real estate rehabilitation. Under this initiative:

Grand Rapids Boston Square Project:

  • A four-story mixed-use building in Boston Square neighborhood
  • 45 new apartments and 9,410 square feet of commercial space
  • $1.3 million RAP grant to assist with construction costs and site conditions
  • Total anticipated capital investment of $25,537,050
  • $400,000 HOME grant from the City of Grand Rapids

The project is part of the Boston Square Together Project, a comprehensive redevelopment of 10 acres aimed at increasing housing, commercial space for entrepreneurs, and community amenities.

The development entity BSQ Together I LDHA, LLC is a development entity of Brinshore Development, LLC, one of the nation's largest and most successful affordable housing development firms. Amplify GR, founded in 2018, invests in securing economic pathways for residents of designated neighborhoods in Grand Rapids.

Downtown Saline Project:

  • Two parcels revitalized into four residential units
  • Commercial and green space additions
  • Total capital investment of over $33 million in the state

"These projects will add critical housing and residential amenities, contributing to the vibrancy and economic activity in their communities," said Michele Wildman, SVP of Community Planning and Development Readiness at the MEDC.

Michigan's Housing Progress and Challenges

Governor Whitmer has made significant strides in affordable housing since taking office. "Since 2019, we've helped build or fix more than 12,000 affordable homes across Detroit," Whitmer stated during a visit to Detroit on March 30, 2026.

The governor toured a newer apartment building off Winder Street, emphasizing the importance of affordable housing to address rising housing costs. "The average first-time home buyer now is 40. They have to make almost $100k a year. There's just not enough housing, and what is available is just too expensive," Whitmer said.

While Michigan has exceeded its goal of building 75,000 attainable homes annually, state officials acknowledge more work remains. Amy Hovey, CEO and executive director of the Michigan State Housing Development Authority, noted: "In our state, we're still about 119,000 units short of where we need to be for today's population. So, we still have a lot of work to do."

Call for State Affordable Housing Tax Credit

During her Detroit visit, Governor Whitmer called on the legislature to create a state affordable housing tax credit and reduce zoning red tape. The goal is to build more homes and bring down housing costs through federal collaboration.

"For a little investment in our state, we're going to get a lot more from the federal government, resulting in an additional 2,600 units every single year," Hovey explained.

Whitmer emphasized that Michigan is currently the only state in the region without a state housing tax credit. "Right now, we are the only state in our region without a state housing tax credit. For a little investment in our state, we're going to get a lot more from the federal government, resulting in an additional 2,600 units every single year," Hovey stated.

RAP Program and Economic Development Strategy

The RAP program is part of the state's broader "Make It in Michigan" economic development strategy. The Michigan Economic Development Corporation (MEDC) supports the growth and resilience of communities like Grand Rapids and Saline as part of this initiative.

"Our population is growing, and we've been ranked a top state for opportunity and doing business," Governor Whitmer said. "Programs like RAP help us build on this progress, attract and retain talented workers, lower costs, build housing, and enrich our communities."

The program provides access to gap financing for place-based infrastructure development and real estate rehabilitation, helping activate vacant properties and increase community vibrancy.

Ongoing Housing Crisis

Despite these efforts, Michigan's housing crisis persists. The average first-time home buyer is now 40 years old and must earn nearly $100,000 annually to qualify. The shortage of affordable housing remains a critical challenge for working Michiganders.

Governor Whitmer's administration continues to push for legislative action to create a state affordable housing tax credit and streamline zoning processes. The goal is to build more homes and make them more affordable for Michigan families.

"This is not a crisis that is unique to Michigan; it is not one that will be solved overnight, but man, we're making great headway, and we can't slow down now," Whitmer said.

What's Next

The state's housing efforts will continue with the RAP program and other initiatives. However, Michigan still faces a significant gap between current housing supply and population needs. The call for a state affordable housing tax credit represents a potential breakthrough that could add thousands of units annually through federal matching funds.

As Michigan continues to grow, the state's ability to provide affordable housing will remain a critical challenge for policymakers and communities across the state.