Michigan faces 195,000-unit shortage in affordable rental housing
Housing advocates warn state lawmakers that Michigan’s shortage of 195,000 affordable rental units creates a “pipeline of homelessness” affecting hundreds of thousands of residents.
LANSING, MICHIGAN — Housing advocates informed state lawmakers Tuesday that Michigan faces a severe shortage of nearly 195,000 affordable rental units, creating what one expert called a “pipeline of homelessness” affecting three-quarters of a million residents.
Eric Hufnagel, CEO of the Michigan Coalition Against Homelessness, presented research from the National Low Income Housing Coalition to the Michigan Senate Housing and Human Services Committee, detailing the scope of the state’s housing crisis.
“So in essence, the pipeline of homelessness is built into the market because of the lack of affordable housing available to those individuals. Three quarters of a million people in the state of Michigan,” Hufnagel said.
Severe Housing Shortage Documented
According to the National Low Income Housing Coalition data presented to the committee, Michigan has only 37 affordable and available rental homes per 100 extremely low-income renter households. The organization estimates the state faces a shortage of approximately 195,000 rental homes that are affordable and available for extremely low-income renters.
The housing burden extends well beyond availability. Seventy-five percent of extremely low-income renter households in Michigan face a severe cost burden, meaning they spend more than 30% of their income on housing costs and utilities.
Current Homelessness Numbers
The National Alliance to End Homelessness reported that 9,739 Michigan residents experienced homelessness on any given night in 2024, underscoring the connection between housing shortages and street homelessness.
Lisa Reinecke, the Homeless Solutions Director at TrueNorth Community Services, testified about changes she has observed in her 14 years working in homelessness services. She noted a clear shift since 2020 in the demographics of people experiencing homelessness.
“We are seeing more families and more working individuals who simply cannot afford housing,” Reinecke told the committee.
Advocates Push for Solutions
Khadija Erickson, the housing chair for the Lansing NAACP and the executive director of the Michigan Tenant Resource Center, also testified before the Senate Housing and Human Services Committee, adding her voice to calls for increased affordable housing development.
The testimony comes as state lawmakers consider various proposals to address Michigan’s housing crisis. Advocates emphasized that without significant intervention, the shortage will continue to push vulnerable residents into homelessness.
The committee hearing highlighted the stark mathematical reality facing Michigan’s housing market, where demand for affordable units far exceeds supply. Housing advocates stressed that addressing this imbalance requires both immediate intervention and long-term policy changes to increase the availability of affordable rental housing across the state.
