Michigan Municipal League, Realtors tell committee zoning reform, incentives and funding needed to boost housing supply

Jen Riggtrink of the Michigan Municipal League and Brad Ward of the Michigan Realtors told the Committee on Regulatory Reform that Michigan is facing a shortage of housing supply driven by multiple factors, and urged a mix of zoning reform, targeted incentives and technical assistance to accelerate development.

Jen Riggtrink, who identified herself as representing the Michigan Municipal League’s state and federal affairs team, summarized the obstacles her members report: lack of vacant land, a shortage of builders and developers in some areas, outdated zoning regulations, inadequate infrastructure, and limited funding to fill financing gaps for projects. She told the committee that “we have more need than we have supply,” and that solutions require addressing labor, lumber, land, laws and lending — what she described as the five L’s that create a financing gap for projects.

Riggtrink said local governments have undertaken zoning reforms in many places: in a survey cited during the presentation, 84% of municipalities reported they had either completed or were in the process of updating zoning to support housing, 10% said no, and 5% were unsure. She described state tools intended to help municipalities, including the Michigan State Housing Development Authority (MSHDA) Redevelopment Ready Communities (RRC) program and a Housing Readiness Incentive Grant program, which she said had been funded in recent budgets but has no remaining money in the current form. Riggtrink also described preapproved “pattern book” home plans that communities can adopt to expedite approvals.

Brad Ward, vice president of public policy and legal affairs for the Michigan Realtors, told the committee the state’s housing inventory is “far below” a normal market supply and that affordability has worsened as supply fell behind demand. Ward cited a 2024 median home price figure discussed in the presentation ($230,000 in 2024 vs. $211,000 in 2021) and said Michigan’s months of inventory were roughly under three months compared with about six months in a balanced market. He urged reforms such as reducing parking minimums, streamlining approvals, allowing duplexes and small multiunit buildings in single-family zones, and reforming who can challenge zoning decisions to reduce delays.

Both presenters recommended carrots — prioritized funding or incentives — for communities that adopt reforms, rather than a one-size-fits-all preemption. Riggtrink described the RRC program as a voluntary certification that helps municipalities align planning, zoning and economic development practices; she said the program dates to work beginning circa 2011 and emphasizes having marketable priority sites, clear zoning and transparent local incentives.

Committee members asked for follow-up materials: Riggtrink said she would share her research links with committee staff and clarified that the Housing Readiness Incentive Grants funded technical assistance for zoning and planning work and had been expanded to allow counties to apply in the second round. Ward said realtors work to manage buyer and seller expectations in the low-inventory market and described the “lock-in effect” of mortgage rates and property tax differentials that can discourage turnover by existing homeowners.

Neither presentation proposed a specific single bill text in committee; both presenters described programs and policy concepts and offered to work with legislators on details and implementation.