Michigan can be making real housing progress and still be in a housing crisis. The numbers support both conclusions.
U.S. Census Bureau QuickFacts reports 23,075 building permits in Michigan during 2025. The Michigan State Housing Development Authority says the state still has an estimated 97,000-unit housing gap. MSHDA has also reported major recent investment in new and preserved housing.
Why new construction has not closed the gap
A housing shortage is accumulated over years. Adding tens of thousands of units does not instantly eliminate a six-figure deficit, especially when household formation, migration and demolition continue at the same time.
Michigan also has a large stock of older housing. A 2026 state housing report noted that nearly two-thirds of homes were built before 1980. That creates a second challenge beyond raw unit count: preserving and modernizing the housing already in place.
More than 600 affordable rental units entered the 2026 pipeline
In June, MSHDA announced nearly $19 million in federal Low-Income Housing Tax Credits supporting 603 affordable rental units across 13 developments in nine Michigan communities. The projects include housing in Detroit, Grand Rapids, Monroe, Bay City, Traverse City, Port Huron and Sault Ste. Marie. They are a useful statewide progress signal—but awards and planned units should still be distinguished from completed, occupied homes.
Housing activity is highly local
Michigan Progress tracks 2025 residential permits at the city level because statewide production can conceal where housing is actually being added. A city authorizing 400 units is behaving very differently if it has 50,000 residents than if it has 650,000.
That is why our Michigan 276 housing ranking uses authorized units per 1,000 residents. The normalized measure does not tell us whether units are affordable or completed, but it makes production intensity easier to compare.
Affordability is more than supply
Michigan’s 2020–2024 median owner-occupied home value is $231,600 and median gross rent is $1,129, according to Census QuickFacts. Those statewide medians hide major city differences. Some communities combine relatively modest home values with lower incomes; others have high incomes but even higher housing costs.
Property taxes also matter to the total cost of ownership. Every Michigan Progress city dashboard includes a property-tax context section and a link to LowerPropertyTax.com for owners who want to understand assessment and appeal options.
What would housing progress look like?
Michigan housing progress should be measured in several ways: more units authorized, more units completed, reduced shortage estimates, less rent burden, more attainable entry-level ownership and a healthier existing housing stock.
The permit numbers show movement. The shortage shows how far there is to go.