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Soaring rents in Michigan prompt renewed talks about intervention

Soaring rents in Michigan prompt renewed talks about intervention
Soaring rents in Michigan prompt renewed talks about intervention

ANN ARBOR, Mich. (WXYZ) – Soaring rents in Southeast Michigan are a rising drawback, made worse by the pandemic and up to date inflation.

One of the locations the place it turns into evident is Ann Arbor; We solely spent a couple of minutes in a grocery retailer parking zone and met a number of folks keen to specific their frustration.

“$1,104 for a studio. So it’s just a huge space that I’m sharing with someone,” said UM student Grace Shapiro.

She lives not far from the 48104 zip code where we were; where current HUD data shows some of the highest market rents in Ann Arbor.

“I’ll pay $1,400,” said sophomore Maggie Lomasney, talking about her room in a four-bedroom shared apartment. She admits that without the help of her parents she would not be able to live there.

“The rent for the current unit I live in would increase by $150 if I renewed, which I find a bit ridiculous,” she said.

The problem of rising rents has sparked renewed conversations about tenant rights at both the local and state levels.

State Senator Jeff Irwin, a Democrat representing Washtenaw County including Ann Arbor, helped introduce legislation in this session to overturn Michigan’s 1988 ban on rent controls, or rent stabilization policies.

Rent control refers to state caps on how much a landlord can charge for rent and lease renewals. In general, the rental price brake is handled at the municipal level.

“The federal government invested heavily in affordable rental housing in the 1960s and 1970s, and that has really diminished,” said Jim Schaasfma, housing attorney for the Michigan Poverty Law Program.

He said stabilizing rents could have an impact in a number of ways.

“It could be a cap on the rent increase, for example a percentage increase. This increase could be tied to the inflation rate,” he stated.

A 2019 Urban Institute research discovered that solely 182 municipalities in the nation have hire management insurance policies; and they’re all in New York, New Jersey, California, Maryland or Washington DC. Schaasfma stated one of many causes there hasn’t been hire management in most components of the Midwest is that rents are comparatively decrease right here.

Dozens of states, together with Michigan, presently have legal guidelines in place that prohibit native governments from taking motion to manage rents.

Josephine, a senior at U of M, got here right here from out of state. Having beforehand lived in Nevada and California, she stated inexpensive housing was one of many issues that drew her to varsity in the Midwest.

But now, “it’s probably one of my biggest burdens in terms of cost,” she stated.

She chooses to not renew her lease subsequent yr as a result of her hire is rising by greater than $100 a month. Last yr it elevated by $30 a month.

“It’s kind of out of my budget,” she stated.

At the native degree, advocates for renters’ rights in town of Ann Arbor gained a victory this fall when town council handed a brand new ordinance giving renters the authorized proper to resume their lease until a landlord has a respectable authorized purpose to terminate them. The regulation requires landlords to offer tenants with a great religion renewal provide no later than 180 days earlier than their present lease expires.

When it involves the rental worth brake – and whether or not or not it’s a doable resolution to the issue of rising rents, the Schaasfma believes that it must be an possibility. He helps the abolition of the Eighties ban.

However, hire management alone can not remedy the issue, he stated.

It is one that’s rooted in provide.

“There is a significant lack of adequate supply or availability of rental housing. And when you combine that with inflationary pressures, we’re seeing historically high rents in Michigan,” he said.

There’s also the problem of rental rates well in excess of future wages, he said, noting that there are many areas in Metro Detroit where you’d need to be making close to $40 an hour to get a 2- room apartment at a fair market price.

Rent control proponents suggest it can increase stability by reducing tenant turnover, which in turn benefits neighborhoods. Opponents point to supply problems that can arise from rent control, landlords make less profit and this can lead to delays in maintenance and repairs.

Schaasfma said to really address the problem, Michigan needs to seriously invest in more affordable housing projects.

He said the state allocating around $200 million in federal Covid dollars to do just that is a significant step.

“But no money was made available for housing as part of the state budgetary policy. For rental housing development,” he stated.

He continues, “I believe that displays the worth that’s being positioned on this problem.”

Irwin’s action to reverse the 1988 ban remains in committee.

It is unclear whether the bill will be reintroduced at the next session.

Schaasfma hopes that the root problem of the housing crisis, which he believes is supply, remains in the foreground.

“It does not must be a celebration problem,” he stated.