Rental Property Owners Association of Michigan addresses housing shortages and rising costs

On March 13, 2025, the Michigan House of Representatives convened to discuss critical regulatory reforms impacting the state's housing market. The meeting highlighted significant challenges faced by rental property owners and the broader implications for housing availability in Michigan.

Erica Farley, Executive Director of the Rental Property Owners Association of Michigan, presented a compelling case regarding the state’s housing crisis. She emphasized that Michigan is experiencing a severe shortage of rental units, with estimates indicating a deficit of 90,000 housing units. This shortage is exacerbated by the aging housing stock, particularly in Southeast and West Michigan, where many properties require substantial renovations. Farley pointed out that the rising costs of labor and materials, driven by inflation, have made it increasingly difficult for property owners to maintain and improve their rental units.

Farley also addressed the impact of insurance costs on rental housing. Many insurance companies are becoming reluctant to insure properties that accept Section 8 housing vouchers, which poses a significant challenge as new regulations require landlords to accept these vouchers. This situation has led to increased insurance premiums, further straining the financial viability of rental properties.

Andrew Kuhn, President of the Apartment Association of Michigan, echoed Farley’s concerns, noting that regulatory burdens account for nearly 35% of the costs associated with housing units in the state. He highlighted that the time required to develop new housing has increased significantly, with projects now taking 18 to 24 months to complete, compared to 12 to 14 months previously. This delay not only raises costs but also discourages developers from investing in Michigan, prompting some to seek opportunities in other states where regulations are less stringent.

Both speakers underscored the urgent need for regulatory reform to facilitate the construction of new housing and the renovation of existing units. They advocated for changes in zoning laws and streamlined approval processes to encourage development and address the growing demand for affordable housing.

The discussions at this meeting reflect a critical moment for Michigan's housing policy. With the state grappling with a housing shortage and rising costs, the need for effective solutions is more pressing than ever. As lawmakers consider the testimonies and recommendations presented, the future of housing in Michigan hangs in the balance, with potential reforms poised to reshape the landscape for both property owners and residents alike.