Michigan's Housing Shortage
Michigan faces a significant housing shortage, particularly for affordable rentals and entry-level homes. Statewide, estimates put the deficit at 100,000–200,000 units. West Michigan has experienced some of the state's fastest rent growth, with Grand Rapids median rents increasing over 50% between 2019 and 2025. Cascade Township's housing market reflects broader pressures: prices have risen sharply and few affordable options exist near the township.
The causes are structural: restrictive zoning that favors single-family homes, high construction costs (materials and labor), limited land near employment centers, and decades of underbuilding. State and local governments are debating how to address the shortage — primarily through zoning reform, but also through subsidies, tax incentives, and infrastructure investment.
Recent Michigan Legislation
- ADU law (PA 385 of 2024): Required local governments to permit accessory dwelling units (in-law apartments, backyard cottages) in single-family zones. Estimated to add tens of thousands of housing options over time. (See the Cascade ADU topic for local impact.)
- Missing middle housing: Bills to allow duplexes, triplexes, and small apartment buildings in single-family zones have been introduced but not yet passed as of early 2026.
- Michigan State Housing Development Authority (MSHDA): Funds affordable housing through low-income housing tax credits, housing trust fund grants, and rental assistance. Demand far exceeds available resources.
- Local zoning reform: Some Michigan cities (Detroit, Grand Rapids, Ann Arbor) have independently reformed zoning to allow more density. Township adoption has been much slower.
The Two Sides
- Housing is a basic need; when supply is constrained by regulation, prices rise and lower-income residents are priced out
- Zoning reform allows private investment to produce housing without subsidy — the most scalable solution
- More housing near jobs and transit reduces commutes, emissions, and traffic congestion
- Local opposition to new housing ("NIMBYism") imposes costs on everyone outside the existing homeowner class
- Zoning protects established neighborhoods from rapid character changes that residents chose those areas for
- Infrastructure (schools, water, roads) must keep pace with population growth — new housing without infrastructure investment creates problems
- Market-rate new construction alone won't produce affordable housing; subsidized programs are essential for lower-income residents
- State pre-emption of local zoning removes community self-determination on fundamental land use decisions
What to Watch
- Michigan Legislature: Missing middle housing and transit-oriented development bills could significantly change what townships must allow. Track legislature.mi.gov for bills in the Local Government and Housing committees.
- Cascade Township Master Plan: The Master Plan's housing policies determine whether township zoning is a barrier or facilitator for new housing. Watch for Master Plan update processes.
- MSHDA funding cycles: Annual Low-Income Housing Tax Credit rounds fund affordable housing in Kent County. Local support letters from townships and municipalities can influence which projects are funded.