Kalamazoo faces housing shortage after surplus

by / ⠀News / August 27, 2024
housing faces

Kalamazoo, Michigan, once faced a housing surplus, with many abandoned and rundown homes. However, the situation has reversed, and the city now grapples with a housing shortage.

Governor Gretchen Whitmer addressed the issue in her recent speech, stating, “The rent is too damn high, and we don’t have enough damn housing.

So our response is simple: ‘Build, baby, build!'”

The housing crisis, previously seen as a problem in high-cost cities, has spread nationwide.

Ali Wolf, chief economist at Zonda, a data and consulting firm, said, “The Great Recession broke the U.S. housing market.”

Double-income couples with good jobs are being priced out of homeownership, and homeless encampments have become a common sight. The high cost of housing and its social problems are among the few issues that unite Americans today.

Since the Great Recession, the U.S. has built too little housing to match population growth. Since 2010, builders have started about 1.1 million new homes annually, well below the 1.6 million needed.

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Housing crisis hits Kalamazoo hard

The country now faces a worsening housing deficit each year. In Kalamazoo, housing prices have soared, affecting even middle-class families earning six figures. Michigan lawmakers are subsidizing developers to address the issue, but fixing it will take a long time.

Housing has become a prominent national issue, discussed at both political conventions this summer. Former Presidents Barack Obama and Bill Clinton acknowledged the crisis during the DNC Convention. The market alone cannot solve the crisis due to insufficient home construction over the past 15 years.

Government intervention, in the form of subsidies, is necessary to make housing more affordable. This transition is complex and requires considerable effort to change course.

About The Author

Erica Stacey

Erica Stacey is an entrepreneur and business strategist. As a prolific writer, she leverages her expertise in leadership and innovation to empower young professionals. With a proven track record of successful ventures under her belt, Erica's insights provide invaluable guidance to aspiring business leaders seeking to make their mark in today's competitive landscape.

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