KALAMAZOO, Mich. — Governor Gretchen Whitmer's State of the State address Wednesday focused on affordable housing — a pressing issue not only in West Michigan, but around the state.
Kalamazoo County Housing Director Mary Balkema says it's a crisis county leaders have been trying to tackle for years.
"There's way more demand than supply," Balkema told FOX 17.
She says, right now, the county is short 7,750 affordable housing units. That, coupled with construction costs and interest rates, add up to the high price tag on housing.
"This is the first time where it is cheaper to rent than to own and, generally throughout the past few decades, that has not been true," she explained.
On average, smaller homes today cost more than $200,000 — when it used to be around $100,000. Balkema says most people are working, but the wages are not keeping up.
"To be able to afford a one-bedroom in Kalamazoo County, you need to make $15.80 an hour, and we know that a lot of our employers are not paying that," she added.
According to United Way's 2023 ALICE Report, 26% of Kalamazoo County residents live below the ALICE threshold. This means they earn above the federal poverty line, but do not make enough to afford basic necessities in their area.
"Even at 100% of AMI [area median income], for a family of four in Kalamazoo County, is over 90,000. Not every family of four makes 90,000. So, the ALICE group maybe makes 60%. So, we're trying to build things that we can accommodate everyone," Balkema explained.
Along with the governor announcing plans to invest $1.4 billion in Michigan's housing, the county is also putting in work. According to Balkema, they are the only county in the state with a housing millage — one that generates $8 million a year.
The county has an online application open for developers and nonprofits to apply for funding to bring more affordable housing to the area. It's open until January 31.
