Affordable rental housing throughout Michigan is scarce

Overly restrictive zoning, codes, and land use have driven up the cost of land and construction, fueling the housing crisis. 

• This is a major deterrent to in-demand missing middle housing typologies. The AEI Housing Center states that “modestly increasing residential density in such areas, even from a 1- to a 2-unit structure, would result in a much-needed and meaningful addition to our housing supply, enhance the vibrancy of commercial areas, and yield a significant boost in property tax revenue.” 
• Walkable-oriented development (often hampered by overregulation)       brings housing closer to employment centers, reduces transportation costs, and frees up time for other activities such as recreation and childcare. Walkable Oriented Development | American Enterprise Institute - AEI

Light-Touch Density (LTD)

• LTD is an upzoning strategy that encourages incremental increases in residential housing density.
• “In San Diego County, light-touch increases in single family detached density resulted in 31% more home built per year, a 10% reduction in price, and a 21% increase in property taxes. This light touch density achieves natural affordability without reliance on subsidies, income limits, or expensive infrastructure improvements.” Homeowners and cities can win big with Light Touch Density (prnewswire.com)

State lawmakers have recently introduced extreme and potentially harmful policies that will negatively impact future construction of new housing supply, deterring development and worsening Michigan’s current housing woes. 

DANGEROUS POLICIES

Rent Control

• Rent control is a proven failure that only exacerbates the lack of housing 
• The Brooking Institute Review of Research states that rent control “decreases affordability, fuels gentrification, and creates negative externalities on the surrounding neighborhood.”
• Bloomberg states “rent control causes housing shortages that reduce the number of low-income people who can live in a city.”
• IMG Poll shows that only 1% of economists agreed that local rent control policies in places like New York and San Francisco positively impacted affordable housing. Rent Control - Clark Center Forum (kentclarkcenter.org)
• Rent control prevents investment in new homes, exasperating the housing supply crisis. 
• Rent Control not only fails to address the causes of rising rental costs—increased housing demand—but it also does not help and even makes it harder for people who can’t find a place to live by limiting options. 
• Increased regulations discourage new rental housing development and maintenance.
• Shortages increase competition for housing and limit options for low-income individuals.
• Encourages landlords to convert apartments to condos to earn market price for their real estate, contributing to more shortages.
• Rent control leads to overconsumption of housing, where tenants stay in housing larger than needed, limiting availability for new families.
• Rent control will halt investment, rehabilitation, and housing construction in Michigan, worsening our housing shortage. It will also increase competition for what little housing is available. While the policy aims to preserve affordable housing, it hurts the very community it claims to help by limiting accessibility and affordability.

• Thirty-three states, including Michigan, have made rent control illegal. LET’S KEEP IT ILLEGAL.

Source of Income As A Protected Class

This bill would make residential rental housing in Michigan public housing, requiring owners to accept housing vouchers. It would also make it housing discrimination to deny an applicant on the sole basis that rent would be paid by a third-party governmental agency.

Overly Burdensome and Potentially Dangerous Restrictions on Leasing Criteria

It would prohibit landlords from screening potentially dangerous criminal applicants during the leasing application process and using credit scores to qualify residents. Unintended consequences of such regulations could be hazardous for Michigan renters