Team Peninsula, a group of community and organization leaders in the Keweenaw committed to increasing the population and improving the median household income, has recognized housing as a top priority issue in the U.P. and will seek out and advocate for solutions. In a series of articles, some of these housing issues will be explored in more detail and extend the discussion on shortcomings and potential solutions. By better understanding the issues, Team Peninsula hopes that community members will be better able to optimize their prospects in the current market – and be better positioned to act for change in their communities.

Housing in Michigan’s Upper Peninsula has been a topic of discussion for many decades. Currently, the U.P. is experiencing an increased interest for housing due to recent job growth across multiple industries and the even more recent shift toward remote working opportunities. While an increase in population could potentially lead to economic progress, there are simply not enough homes or rental properties available to house everyone interested in relocation and many units that are vacant offer sub-par conditions.

Some of the most serious and frequent issues experienced by homebuyers include: a lack of affordable “move-in-ready” starter homes (under $150,000); homes in Houghton-Hancock tend to sell within 24-48 hours of being listed, forcing potential buyers to consider purchasing a home sight unseen or not relocate at all; buyers who are relocating from high-cost areas are often able to pay more for homes in the Keweenaw than existing residents’ incomes can afford; the rapid increase of sales prices causes a lag in appraised values, sometimes preventing homebuyers from securing financing; very little public rehabilitation funding is available to low-income homeowners, whose older homes often can’t find success on the market without significant updates; and there is a shortage of contractors to conduct home renovations and rehabilitation or lack of interest based on the timeframe or high cost to do so.

There are problems for renters, too: there is a severe lack of single-family rental homes in good condition; much of the apartment rental stock is occupied by college students, and a lot of this housing is subpar (not sufficiently maintained by property owners); there are relatively few rental apartments available in good condition for working professionals, even at a higher cost of rent; many apartments and condominiums have been converted to short-term rentals (e.g. Airbnb) in recent years; and there is very little suitable and affordable rental housing available on a seasonal basis for workers who live here only during the high tourism season.

Even with the many issues listed above, there has been some positive impact on housing in the area; a small number of high-quality apartment complexes have been developed in the past two years which are starting to meet the critical need for updated rentals for working professionals. Also, rising property values will increase property tax revenues for communities over time, as long as assessments keep up, which will allow for improved community services. And lastly, more single-family housing stock could become viable for relocated residents as federal and state programs bring improved broadband internet to isolated areas of the Western U.P.

Through this outreach, Team Peninsula hopes to educate homeowners, renters, municipal leaders, and community organizations on current housing issues and start conversations about what might be done to improve the situation for current residents and those looking to relocate.