Most renters in Michigan can’t afford their rent – ​​95.3 MNC

There are 1.1 million renter households in Michigan, and more than half of them have trouble paying their rent, according to the 2024 Michigan Statewide Housing Needs Assessment.

There is a shortage of nearly 125,000 affordable housing units for those earning $25,000 or less per year. This shortage forces low-income renters into more expensive housing, causing financial hardship.

David Allen, director of the Office of Market Research at the Michigan State Housing Development Authority, co-authored the analysis along with researchers at the University of Michigan.

He said he believed there were several reasons for the crisis.

“If you look at different markets in the state, you can see that rents have increased much more than they have before,” Allen said. “Increased demand is certainly one of them. Another factor to maybe look at as well is the amount of new product that is coming to market, I think especially in the rental space.”

According to Allen, there are several solutions to the housing problem. These include making it easier to build new social housing and other units in the state, for example by revising some zoning regulations.

A renter in Ann Arbor who spoke anonymously said she pays $1,300 a month for a small one-bedroom apartment.

Ann Arbor is one of the most expensive housing markets in Michigan, with average rents at just under $1,600 per month.

Even though she works full-time for a Fortune 500 company, she struggles to make ends meet, she said.

“I literally haven’t had a full food supply for a couple of months,” she said, “because I spend all my money on rent.”

Allen said he believes another solution to the housing crisis is to make sure landlords understand government programs designed to help low-income renters, such as Section 8.

“Make sure landlords understand that they are earning a steady income when they rent to tenants using these Section 8 vouchers,” Allen said, “since the government always pays at least 30% of the rent.”

Allen said the Housing Authority has seen a large influx of money in recent years due to the COVID crisis, which can be used in a variety of ways to alleviate Michigan’s housing problems.