The new goal, which includes nearly 50,000 homes already built, is “ambitious, it’s achievable and it’s absolutely necessary,” Whitmer said Wednesday.
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The announcement comes as policymakers work to address affordable housing shortages, particularly for lower-income workers. The Whitmer administration is already working to spend nearly $1.4 billion in state and federal funding allocated for various affordable housing initiatives.
That money is expected to help build 10,000 new housing units, Whitmer’s office said in January as the governor celebrated what she called the largest housing investment of its kind “in Michigan history.”
Officials say the need is clear: Michigan’s statewide vacancy rate for housing units available for rent or sale decreased from 4.2% in 2011 to 1.9% in 2021. For the latter year, state data shows only 62% of rental homes were affordable to households earning less than 60% of their region’s median income.
Amy Hovey, executive director and CEO of the Michigan State Housing Development Authority, said recent initiatives have helped but noted the state is “still in a housing crisis” and could use action from the Legislature.
She urged lawmakers to raise the state’s single-family mortgage amount to keep up with rising housing costs.
State officials also highlighted pending plans to provide rebates to reduce costs for Michiganders who install solar energy systems or energy-efficient appliances in their homes.
Michigan is in line for $211 million in home energy rebate funding through the federal Inflation Reduction Act, which can be used to help residents make their homes more efficient or upgrade electric systems and high-efficiency appliances, including heat pumps and electric stoves.
The state submitted a proposed design for its rebate programs last week and is waiting on approval from the U.S. Department of Energy. The energy efficiency rebates are expected to be larger for Michiganders with lower incomes.
