News Photo by Steve Schulwitz A for-sale sign sits outside a house on Sable Street in Alpena recently. Northeast Michigan’s inventory of homes for sale or rent is low, but local, state, and federal officials are trying to find a solution to the housing crisis.

ALPENA — In order for cities, townships, and counties to grow and develop, a quality stable of available housing is a must, and leaders in Northeast Michigan are doing their best to address the local housing crisis.

Nationwide, there is a shortage of available housing to purchase or rent, and rural communities like those in Northeast Michigan often struggle to recruit new residents, job talent, and new development until that shortage is addressed, officials say.

In other words, without adequate housing, future development will be held back some.

Bolstering the inventory of housing units won’t be accomplished overnight, and it could take years before there is a significant increase in housing availability in the Alpena region.

Local, state, and federal governments know the housing shortage is a serious issue and are pouring money into addressing it. There are programs that help rehabilitate houses that have fallen into disrepair so they can be sold and occupied and other initiatives that help local officials recruit developers who could build housing units to add to the depleted housing market.

Mike Mahler, Alpena Area Chamber of Commerce economic development director, said housing is one of his top priorities. Mahler is part of the local housing task force and other partners have already had some successes, with some homes added to the local inventory.

Mahler said the costs of buying and renting a home locally is high. He said we have a housing shortage in part because of the number of Airbnb and other short-term rentals in the area, because of the high cost of building new housing, and because people are not selling their homes and upgrading the way they might have in the past.

Mahler said there is ample interest in Alpena, in terms of economic development and in the number of people considering moving to the area, but the lack of housing sometimes prevents them from doing so.

Some housing units have been refurbished and placed on the market, and through outreach efforts, there is an increased interest in larger housing projects.

Last year, a large housing project, called the Gardens of Alpena Senior Living Community, was announced. It is slated to be built on the Alpena-owned property on U.S.-23 North.

A developer has a purchase agreement with the city to purchase land to construct 68 independent living units and 60 assisted living units. The project is not expected to be completed until sometime in 2016.

Mahler said developers face challenges in heightened costs of building new housing from the ground up. He said housing projects come with a large price tag, and developers who pay for the projects have to sell or rent the properties for more than what many in the community can afford to try to recoup that investment.

He said there may be some light at the end of the tunnel, however, as material costs and interest rates are beginning to come down.

“There are many developers that have reached out to discuss with me available land for subdivision development,” Mahler said. “The conversations centered on parcels from five acres to 20 acres. The lack of contractors, the excessive cost of building materials, lower local rental rates, and elevated interest rates are all significant factors in determining the viability of these projects. Some building material prices have declined in 2024, and there is an expectation of further interest rate cuts in 2025, which could help further close the financial gaps that exist.”

Rogers City Mayor Scott McLannan said that even small cities like Rogers City are impacted by the housing shortage. He said adding to the existing housing inventory is a high priority, because the housing shortage directly impacts future development and the number of people who can move to Rogers City.

“We know that housing is critical to building a strong economy,” he said. “We have a large shortage of family homes, and that makes it so businesses struggle to find employees. Finding staff is often tied directly to housing or a lack of it.”

McLennan said his city is working with Mahler, economic development firm Target Alpena, and other partners to lure in developers to build more housing. He said there is no easy solution to solving the problem and it’s something that is going to take time to address.

State Rep. Cam Cavitt, R-Cheboygan, who represents Northeast Michigan in the state House, said this region is not unique and the housing crisis is widespread around the state and country. He said the state has programs that can help people purchase homes or help with rent, as well as assist housing investors.

“Housing is the foundation of strong communities and thriving families, and, in Michigan, we recognize the importance of ensuring everyone has access to safe and affordable housing,” Cavitt said. “Through programs like the Michigan State Housing Development Authority, we’re providing resources for first-time homebuyers, offering rental assistance, and supporting affordable housing development projects. These initiatives are critical for addressing housing challenges, boosting our economy, and making Michigan a great place to live, work, and raise a family.”