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Opinion | Property taxes are squeezing household budgets. Real people need real relief, now
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It’s no secret that Michigan is facing a housing crisis, with countless residents struggling to find an affordable place to live while also managing essential expenses like groceries, health care and child care. Here in our state and across the country, homelessness is on the rise, with Michigan alone having an average of 30,000 people experiencing homelessness each year. That staggering statistic is, no doubt, largely fueled by our state’s lack of affordable housing supply. Right now, Michigan needs around 119,000 more homes to meet current demand, a severe shortage that threatens to drive housing costs even higher and put more Michiganders at risk of losing the place they call home.
As the chair of the Senate Appropriations Committee, I have prioritized funding commonsense solutions to address our housing crisis. Since 2024, we have successfully added 71,000 new homes through a variety of programs, grants and innovative approaches. I have also championed legislation that would give renters the tools they need to ensure safe and healthy living conditions. We secured the first-ever ongoing funding for affordable housing to ensure this commitment carries on for years to come. So, while Michigan is making steady progress in expanding our housing stock and reducing costs, it’s important to recognize that building more homes is only part of the solution.
According to the AARP, a staggering 82% of adults 45 years and older are concerned that rising property taxes could threaten their ability to remain in their homes as they age. The situation isn’t much better for renters, as Michigan ranks third in the nation for the highest yearly rent increases. As we create more housing opportunities, we also need to ensure that Michiganders can afford to remain in their homes while still being able to cover the cost of food, medication and other essentials — a concern that’s only increasing as the prices of everyday goods continue to rise. These reasons and more underscore why it’s time to consider changes to our property tax laws.
That’s why I’m working on bipartisan legislation aimed at delivering real relief for middle-class Michiganders and easing the burden on working adults, families, seniors, and everyone in between — because housing costs impact everyone.
My proposal to expand our state’s Homestead Property Tax Credit would provide relief for nearly half a million residents by reducing the share of income they’re expected to pay in property taxes from 3.2% to 3% of household income. It would also increase eligibility, allowing an additional 250,000 people to qualify for the credit, and increase the maximum credit from $1,800 to $2,000 (with regular adjustments for inflation).
Michigan couples, as well as single filers, would be able to take advantage of a new, higher income threshold for tax benefits. Renters would also benefit from these changes as the portion of rent that they can count toward the credit would increase from 23% to 25%.
By boosting the credit amount and allowing more people across the state to qualify, this legislation would help middle-class Michiganders keep more of their hard-earned dollars, helping offset the costs of everything from rent, gas, and groceries to copays and prescriptions. Simply put, these changes will provide the economic stability that every Michigander needs and deserves. And, with so much uncertainty surrounding tariffs, prices skyrocketing, and looming federal cuts to rental assistance, it’s more urgent now than ever to ensure everyone can afford to stay in their homes.
These proposed changes are the product of countless discussions with colleagues and community leaders from both sides of the aisle. The takeaway was clear: if we want Michigan to remain a place where people can put down roots, raise a family, and retire with dignity, then we must ensure housing is affordable — not just to buy, but to keep. During a time when partisan divide seems to run deep, Democrats and Republicans agree on this — that expanding the Homestead Property Tax Credit is a smart, compassionate investment in anyone who owns or rents a home in Michigan.
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