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1. Increasing Supply to Meet Demand
As mentioned on the Who I Am page, I have studied this issue extensively. We all know housing has become too expensive. However, most economists agree that rent control makes the problem worse. Setting caps on rent causes developers to build less, which means while demand increases supply is stagnant, which leads to higher rents. For those who do build new developments and are subject to rent control on the new developments, studies have found that the quality of these developments significantly decrease. So what can be done?
A market economy means prices stabilize when supply and demand meet. We must do everything we can to incentivize increased development. While some of this can be accomplished through targeted tax breaks at underutilized or vacant properties, we also need to ensure our developments are dense enough to meet our needs by taking all actions necessary at the state level to influence better zoning requirements at the local level. This will help prevent further encroachments on our rural farms and forests through the urban sprawl of less-dense developments, while building up our inner cities, older inner suburbs, and our county seats.
2. Innovative Solutions to End Chronic Homelessness
Dumping funding into traditional shelters and soup kitchens has not solved our homelessness problem. While shelters and soup kitchens serve an emergency need, we need to be investing more into transitional housing to end the cycle of homelessness. While this system may cost more in the short term, moving people out of homelessness and into stability costs less on our communities over time.
Increasing our investments in rent-to-own tiny home communities and other forms of transitional housing, we'd not only be providing long-term solutions for people to get back on their feet, but would be connecting them to job training, counseling, substance abuse treatment, and more.
3. Making AMI Reflect Local Realities
One tool used to incentivize residential developments at more affordable rates is to provide tax incentives to create "market rate" units. What is considered market rate is based in part on the Area Median Income (AMI), which is typically calculated on a county-wide basis. This means that income in wealthier parts of the county like East Grand Rapids or Ada contributes to a higher average income, which in turn leads to higher allowable rents. While this may work in East Grand Rapids, this does not work for those who live in other parts of the county with lower median incomes whose "market rate" rents are still unaffordable.
I will advocate for the calculation to be based on the average income of the locality where the development is located, and base the market rate rental rate off of that amount. This will help ensure state funding that is intended to help create more affordable housing is accomplishing its goal by making rents affordable for those living within the locality.
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