Bargains to Be Found Despite Lansing, Mich., Housing Market Slump
According to the Lansing State Journal, the Greater Lansing (Mich.) housing market has taken a 1-2 punch in the media this month:
- First, came a story out of USA Today that the area was among the bottom 10 in the nation, as judged by declines in median house prices.
- Then came an LSJ report on the unfortunate fact that housing starts are way down, with building permits for new single-family homes in the area falling 25 percent from the same time last year.
It’s troubling news, and more than enough to spur local officials to consider what role they can play in priming the pump for this struggling segment of the Michigan real estate market. The role may end up being quite limited. But that doesn’t mean area officials can’t be creative.
It isn’t a failure of local policy that has sapped the housing market. The economy still struggles, thanks to the ongoing retrenchment of the U.S. auto industry. Any type of small-scale local incentive wasn’t going to alter that downward trend and make Michigan mortgage payments easier to handle for hundreds of thousands of residents.
But the fact still remains that the mid-Michigan economy, by such measures as unemployment rates, is healthier than other parts of the state. The fact is that the area benefits from a solid base of jobs in government, manufacturing and Michigan State University.
Area leaders are supposed to be chewing over a new analysis of the local economy and economic development. This report, though quite pointed in its assessment of some shortcomings, still refers to Michigan as a “diamond in the rough.”
The housing market could garner a similar tag with proper marketing. Prices in the region are moderate, even bargains. As the region gears up to attract new business investments, and the U.S. economy strengthens, it should be part of the recruitment pitch that the housing dollar goes long here.
Beyond the sales pitch, the focus should be on incentives:
- Could communities do anything with some small property tax rebates?
- What more can be done for incentives to rehab older homes?
- Can affordable housing be created for lower- and middle-income residents who would otherwise leave the area and hamper the economy further?
It’s tough to read you’re at the bottom in any list, but Greater Lansing still has some good facts to counterbalance its bad ones. Hopefully, they’ll be utilized.