On 7/27/2021 Governor Whitmer proposed using $100 million towards housing projects paid for by the COVID-19. What does that mean for sellers looking to sell their home? Can you see an increase in home value during this housing shortage? How long will this whole process take? Here we break down the new proposal and what it means for you if you are considering selling your home soon.
The announcement on Tuesday took place at Citizen Robotics, a lab that produces robotic construction equipment that can be used to make structures and 3D printing technology to produce low-income houses. Whitmer was joined by Detroit Mayor Mike Duggan, Lt Governor Garlin Gilchrist and Michigan State Housing Development Authority Acting Executive Director, Gary Heidel. This nonprofit company is proposed to work with the development project to produce homes.
Like other major city across the country, Detroit is battling a growing housing crisis in the inner cities. Michigan is burdened by a shortage of rental properties and estimates those numbers to be around 204,728. Additionally, 312,660 renters qualify as very low income. This problem’s epicenter revolves around affordability. This problem has been further exacerbated by the COVID 19 pandemic, leaving many in a position where they cannot afford rent. According to NLIHC, approximately 6.5 million renter households were behind on rent in early July.
The 100 million dollars is expected to help 6000 Michigan households for new housing units and improvements to aging homes. Additionally, this proposal will create 2000 more units, create 1600 jobs and leverage $380 in private investments. This project will focus on residents transitioning from low income to middle income housing.
What is the timeline for this project?
This proposal is still in the initial roll out. There are a lot of budgeting that needs to be determined, such as how much of the money will be used for new units versus relief funds and renovation. This proposal is pending approval in the state legislature, which oversees how those relief dollars are spent.
How will this affect the home prices and the economy?
This is a very new project, and the magnitude of its impact is still undetermined. According to the census bureau, Detroit alone is 142.9 square miles with 267,139 households. This proposal will leverage outside capitol to address the amount of work needed for this project. “By leveraging additional private capital, we will be able to amplify this major investment to its fullest extent,” said Gary Heidel. “The current magnitude of the housing shortage is so large that solving the supply problem will take significant coordination of both public and private resources, coordination that the Housing and Community Development Fund was designed to do.”
If everything goes to plan, this will drive an increase in home prices; specifically, lower income housing areas that need revitalization. Another product of this would be a large stimulus on the economy and a decrease in crime rate.
How do you think it will affect the state of Michigan? Are you on board with this new proposal? Drop a comment in the section below and let us know what you think. Additionally, if your home needs substantial repairs or if you need to sell your home quickly, give us a call or email us. At Anderson Home Paths, we buy houses in any condition and any situation. We are your LOCAL home buyers in the metro Detroit area and help people in all sorts of situations. We are always on track with local news, real estate trends and community changes. Even if you need friendly advice, you can always reach out to us. We promise never to be pushy and give you a fair all cash offer on your home if you are in need. Thanks!