Report indicates that Ann Arbor area needs 3137 new affordable housing units within 20 years

According to a report by Virginia-based urban planning and neighborhood development consulting firm czb LLC, the housing market in Washtenaw County is in pretty good shape.

That's not to say that it can't be better.

One fact that has been stated in the 55 page report is the lack of affordable housing units — non-student housing, more specifically — in Ann Arbor. 

Conversely, the concentration of affordable housing is located in Ypsilanti. 

The report make some suggestions to improve the housing market countywide, but one is to have Ann Arbor add over 3000 affordable housing units over the next 20 years: 2787 of those in the city of Ann Arbor and 350 in Pittsfield Township. 

Countywide, there is no doubt that the market has found a sense of stability in most respects, with renters and buyers both having viable choices. (That said, there are fewer properties available for those who rent — and rent prices are rising.)

But with regard to the housing markets in Ann Arbor and Ypsilanti, the report points out there is a disparity between the two: Ann Arbor, with it's rather sturdy foundation fueled by households that are more highly educated and have the ability for upward mobility, while Ypsilanti and Ypsilanti Township bear a higher number of homes that have suffered the scars of negative equity, along with households that are on the financial brink.

Some argue that this is a jobs issue, while others say, as the report points out, that it is more of a policy issue. Further, it continues, the two markets are expected to continue moving in opposite directions unless a considerable change in policy is made. 

If not, one could expect:

• Some workers in Ann Arbor will not be able to continue to live there as housing costs will rise faster than wages, resulting in the need to commute, which has its own drawbacks.

• In the short-term, Ann Arbor will become less affordable to non-student renters, and down the road, to many buyers.

• Ypsilanti, saddled with falling property values and families who are struggling financially, will be even more affordable and the only viable option for those who were priced out in the surrounding area. 

The report (click here to read) was commissioned by the Washtenaw County Office of Community and Economic Development and funded by the U.S. Department of Housing and Urban Development, Washtenaw County, the city of Ann Arbor and the Ann Arbor Downtown Development Authority.

Chris Glahn is a licensed Realtor in the state of Michigan with RE/MAX Platinum Ann Arbor. He can be reached at 734-730-3403.