Homeownership dreams are fading for many in lower Northwest Michigan, consisting of teachers, healthcare workers, first responders, tradesmen and families, plus many others who work in our local restaurants and businesses.
As scenic beauty and recreational opportunities draw new residents and tourists, housing prices are skyrocketing, leaving local families and essential workers struggling to find affordable places to live.
Slide Courtesy of Jim Tischler – Director of Michigan State Land Bank, Department of Labor of Economic Opportunity
As this chart demonstrates, the current cost of housing is unaffordable and continues to increase much more than personal income.
An elementary school teacher in Leelanau County makes approximately $61,650 annually with a maximum housing budget of $1,541/month. The median cost to own a home in Leelanau County is $4,961/mo.
This crisis is not just about finding a roof overhead; it’s about preserving the fabric of our communities and ensuring a sustainable future for those who call this region home.
The HomeStretch Difference
Homestretch is a 501(c)(3) Community Housing Development Organization and the largest nonprofit affordable housing developer in Northern Michigan, which provides new, decent, and affordable housing for persons and families of low to moderate income.
Homestretch was incorporated in 1996 in Traverse City with seed money from Rotary Charities of Northern Michigan, medical centers, and Fannie Mae. Since then, Homestretch has built over 150 affordable housing units within the region, consisting of Antrim, Kalkaska, Grand Traverse, Benzie, and Leelanau Counties. In 2001, they established the first Community Land Trust (CLT) in Michigan through cooperation with the Michigan State Housing and Development Authority (MSHDA). In 2010, the CLT was replaced with a 99-year deed restriction model, which proved more beneficial for the owners yet maintained the same long-term affordability benefits for the region.
Jon Stimson, Executive Director of HomeStretch since 2017, is responsible for much of the organization’s recent success. His passion is to provide affordable and efficient housing for lower to middle-income persons. He is supported by a 12-member Board of Directors who volunteer their time and energy towards the mission. Under Jon’s direction, along with Carl Jagoditsh, his Field Superintendent, HomeStretch has perfected a townhouse design utilizing Industrialized components to achieve a vertical construction cost of approximately $185 per square foot while also exceeding minimum energy efficiency standards required by Michigan’s building codes. When coupled with public and private financing, this process significantly lowers rental housing costs to as low as $950 per month for residents making 60% of Area Median Income (AMI) and $1,250 per month for families at 80% AMI.
Jon continually stresses that “the key to any community is housing, which, in turn, promotes strong families, economic growth and prosperity for all.”
As the cost of housing increases faster than household income, it’s refreshing to know that Homestretch has perfected a business model that is successful and repeatable for any community interested in pursuing an attainable housing solution.