We can't wait any longer to address Michigan's housing crisis.
While the total value of stocks has grown faster than the total value of real estate over the past several decades, property ownership is still the foundation of the American Dream. In the above graph, you can see that the top 10% of income earners own 87.2% of all stocks, but only 43.9% of all real estate.
As you have personally experienced, Michigan and our country as a whole are facing a housing crisis. Even though interest rates are lower than they were in the 1980s and 1990s, mortgages have never been more unaffordable. The average mortgage payment in our country is 40% of total household income. This is twice as high as it was ten years ago!
As difficult as it is for many homeowners to keep up with mortgage payments and property taxes, it's also difficult for many renters. For every year in this century, rent increases have dramatically outpaced income increases. This means tenants have less money to save toward a future down payment. Combined with historic levels of credit card debt and student debt, many Michiganders are seriously struggling to build a pathway to wealth.
To fix this, Roman has a plan to fill Michigan's housing shortage.
Train Builders
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The median builder in Michigan is 58 years old. We must invest in earn-as-you-learn apprenticeships and create public-private partnerships to ensure every young Michigander following the steps to become a licensed building contractor has a straightforward path to employment. We need a new generation to build their careers while building up Michigan.
Build Homes & Cut Red Tape
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Affordable housing isn't profitable enough for builders and municipalities. That means we must change market incentives.
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For builders, we can create a tax holiday for affordable housing before sale and give tax breaks for meeting a minimum threshold of affordable units built.
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For municipalities, we can create a fund to complement property tax revenue from affordable homes and work together to streamline permitting processes while respecting local control and character.