Affordable Housing Options Scarce in Michigan
/in Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisAccording to a report released by the National Low Income Housing Coalition, a two-bedroom apartment in Michigan is unaffordable for minimum wage renters…unless they work 77 hours a week. Affordable housing was an issue prior to the pandemic, and the economic upheaval has only made it worse. Lawmakers are doling out billions of dollars in emergency rent aid, but experts agree that this is only a short-term fix. Communities need more affordable housing options. With the eviction moratorium expiring, evictions are expected to increase, making it tougher still for displaced tenants to find a place to live. Governor Whitmer plans to use $100 million in federal COVID-19 relief dollars to create 2,000 new affordable rental homes, with funds going toward grants and loans for development, preservation of existing housing and security deposit assistance.
Outdoor Living Spaces Tip the Scales
/1 Comment/in Detroit, Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisOutdoor living spaces are a tipping point for homebuyers. Buyers are looking to entertain family and friends in pandemic-proof ways. Home owners want access to golf courses, larger yards, attractive landscaping, and outdoor rooms. Previously buyers may have bought a cabin in northern Michigan, but now they want everything just steps away. People are focusing on updating and upgrading their outdoor spaces as much as their indoor spaces. Lakefront property is hot right now. Listed lakefront houses and condos are on the market for about 18 days.
Buyers Continue Bidding Wars
/in Detroit, Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisIt continues to be a “dog-eat-dog” world for home buyers. Brokers advise clients to get pre-approval, save, and have some cash to bring to the table. Many home buyers are waiving home inspections, bidding before seeing the home, paying cash, and paying thousands over the asking price to get to the closing table. With more buyers than sellers, the competition is vicious with the average home going for $10,000 over the asking price. Appraisal guarantees are deal-makers, and buyers will have a hard time winning a bid without one.
Vacant WBJK Building To Become Midnight Golf Headquarters
/in Detroit, SE Michigan /by Tracy WillisOn August 5, the deed to the former WJBK-TV Studios building was transferred to another entity called 7441 MGP Properties LLC. The building, located in Detroit’s New Center area, will become the new headquarters for the Midnight Golf Program nonprofit. James Jacob, CEO of Ajax Paving Industries Inc. bought the building through his family foundation and donated it to the nonprofit. He has not disclosed the price he paid for the building. According to the founder and president of Midnight Golf, Renee Fluker, the organization is readying a capital campaign to raise the $10-12 million needed to retrofit the property. The program provides college coaches, life skills training and mentoring to about 1,500 students, mostly first-generation college students.
Metro Detroit’s Fair Market Rents Increase
/in Detroit, National, SE Michigan /by Tracy WillisThe U.S. Department of Housing and Urban Development is predicting rent hikes for the 2023 fiscal year in metro Detroit. It published fair market rents at a 11.9 percent increase for a two-bedroom apartment. The rate is increasing from $1,084 to $1,213, beginning October 1. This increase is higher than the Michigan and national averages which hover around 10.3 to 10.4 percent. Metro Ann Arbor rates are 9.7 percent higher. Kalamazoo County wins the prize for the highest fair market rent increase at 19.3 percent. Private sector data was used to estimate changes. The figures are used to determine rent ceilings for certain low-income and emergency grants, as well as the worth of housing vouchers and the maximum award amounts for Continuums of Care.
Amazon Pivots, Cancels Warehouse Plans in Ypsilanti Township
/in SE Michigan /by Tracy WillisAfter years of expansion in southeast Michigan, Amazon has begun scaling back by scrapping its plans for a new warehouse building in Ypsilanti Township. The plan had called for a 183,200-square-foot facility and had been dubbed “Project Yoga.” The cost of the project was $21.4 million and was to be constructed on about 30 acres of a 120-acre parcel. Amazon has also indefinitely postponed it’s plans to build a new facility in Pittsfield Township. Amazon’s footprint in the region includes about 13 million square feet or more and includes redevelopments of the former Pontiac Silverdome site and the former Michigan State Fairgrounds property in Detroit. It’s finalizing construction on a Canton Township facility in the coming weeks.
Development Coming for Low-Income Seniors
/in Western Michigan /by Tracy WillisSamaritas moves forward with its plant ot build a 4-story building with 54 apartments for low-income seniors. The development will go up near the recently renovated Al Perri furniture building and will allow Samaritas to consolidate its child and family service in the greater Muskegon and lakeshore area. Construction is slated to being in early 2021.
Michigan Downtowns Take A Hit From Remote Work
/in Detroit, Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisDowntown businesses have lost a significant percentage of their consumers due to remote work trends. The number of empty commercial real estate sites is preventing the resurgence of downtowns. Owners are creatively repurposing empty sites to adapt to the need for affordable housing, remote employee wifi access, and coworking spaces.
Michigan Legislature May Nix Short-Term Rental Laws
/1 Comment/in Detroit, Grand Rapids, Northern Michigan, Outstate, SE Michigan, Western Michigan /by Tracy WillisBills in the Michigan legislature that have bipartisan support would nix local laws that ban or limit short-term rentals through zoning. The bills are controversial and have garnered heated debate. Proponents like Airbnb, realtors, and lawmakers from both parties say the proposed changes to state law are about personal property rights and do not prevent cities from regulating short-term rentals. Opponents, which include leaders from cities all over the state and hoteliers, say they do not support an outright ban on short-term rentals. They feel that local leaders should have the power to decide what rules are most effective for their communities.
U.P. Vacation Home Prices Boom
/in Northern Michigan /by Tracy WillisIn keeping with vacation locales in Michigan’s Lower Peninsula, the prices of vacation properties in the Upper Peninsula are on the rise. With limited inventory, many of the recent cottage buyers hail from out of state and intend to use their new U.P. properties during winter months as well as summers. Realtors are seeing multiple offers on every listed property. The median sale price was $197,000 from January 1 through mid-May. That’s nearly a 20% increase from the same period pre-pandemic in 2019.
Human Migratory Habits Change Post Pandemic
/in Detroit, Grand Rapids, Northern Michigan, SE Michigan, Western Michigan /by Tracy WillisAlthough offices are beginning to reopen as vaccinations climb, many employers are still allowing employees to work remotely from home indefinitely. Those who are able to continue working remotely at least part of the time are heading for greener pastures, literally. Real estate company Redfin reported this month that online searching for homes in suburbs and rural areas has increased since the first quarter of 2020 in most major U.S. metro areas. Before the pandemic, a bigger house might not have seemed worth the commute, but if that commute is cut down to 1-2 days a week, the story changes.
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The Housing Market May Be Hitting Bottom
/in National /by Tracy WillisFrom April to May, pending home sales rose 8% according to the National Association of Realtors. Economists had projected a !% decrease. The housing marking is attracting buyers due to falling mortgage rates, which fell below 3%. All regions of the country saw an uptick in sales. Economists predict that the market will slowdown in the 2nd half of 2021, citing the flattening in mortgage demand over the past couple months. The Mortgage Bankers Association’s data backs up the prediction. Buyers are facing challenges with the average loan size increasing. Many first-time homebuyers are squeezed out of the market due to entry-level homes for sale.
Eviction Moratorium Continues Through July
/in National /by Tracy WillisThe pandemic-inspired nationwide ban on evictions is hanging around for a while longer. The Supreme Court rejected pleas by landlords to end the moratorium with a 5-4 vote to keep the pan in place. The ban is due to expire at the end of July and another extension isn’t expected. In addition, the Treasury Department issued guidance encouraging a streamline distribution of the near $47 billion available for emergency rental assistance. The government is attempting to blunt the impact of the end of the eviction moratorium.
Investors Add to Competitive Housing Market
/in Detroit, National, SE Michigan /by Tracy WillisWith limited housing inventory, homebuyers are already over a barrel when shopping for a new home. But add investors into the mix and the market becomes even tougher. Nationally, Metro Detroit has experienced the second-highest increase in the number of investor-purchased homes year over year. Investors are cash buyers who can close more quickly which makes it even harder for buyers getting a mortgage. But for the seller, cash is king and a cash sale allows a seller to move on with their future.
New Report Offers Insight into Detroit’s Rental Housing
/in Detroit /by Tracy WillisInformation on the number of rental properties in Detroit is limited and creates issues concerning improvements to housing conditions and reduction of lead exposure. Most landlords in Detroit own one or two properties, making up about 50% of the units in the city. Of that number, only 2% have registered properties within the city’s formal rental system. The think tank, Detroit Future City, released an analysis on Wednesday that breaks down landlords into categories using the assessed value of the property, corporate ownership, blight violations, taxpayer’s location, property acquisitions and the number of units they own. Tenant advocates continue to raise concerns about evictions and unaffordable housing. The goal is to support landlords and enable them to become compliant with healthier housing conditions.
Southeast Michigan’s Housing Market Is Stabilizing
/in Detroit, SE Michigan /by Tracy WillisSoutheast Michigan’s housing market is becoming more stable. The number of buyers is decreasing due to growing interest rates and high home prices. Sales of homes in southeast Michigan in July were down by almost 20 percent from July of last year. Pending sales are declining rapidly, and properties are sitting longer on the market. According to the Realcomp report, the costs of buying a home is 80 percent more expensive now than three summers ago. Detroit is ahead of the rest of the region for growing housing prices. The median price of a home in Detroit has grown 38 percent since last year, having surpassed $100,000 for the first time in history.
Pilot Program Pays Storefront Owners to Renovate Upstairs Apartments
/in Detroit /by Tracy WillisSouthwest Detroit Business Association’s pilot program grants $8,500 per unit to renovate apartments above commercial spaces. In an effort to expand the number of affordable homes and apartments for city residents, empty and derelict second-floor units are an untapped market. According to Elaina Peterson, a program analyst on the policy and implementation team for the city’s housing and revitalization department, there could be as many as 12,000 unoccupied apartments above stores and restaurants in Detroit. If they were updated and made livable, they would make a huge impact on the number of affordable apartments as rents and sale prices continue to increase. The program is one part of a $203 million housing plan that intends to create new rental housing, help renters to become homeowners, and improve the quality of existing rental units.