Michigan has a housing problem. There were 46,904 housing units permitted in the state in 2005. But only 20,983 permits were issued in 2022, less than half that number.

The decline may explain why housing has become more expensive.

Household incomes have increased over the years in Michigan, but the cost of a house has gone up even more. The national median housing price went up 294% between 2000 and 2022, according to the Federal Reserve Bank of St. Louis. By contrast, the median household income increased by 77% over that same time.

Inflation is one factor behind the rising cost of housing, and it is beyond the control of state officials. But regulations, many imposed at the state and local level, add almost 23% to housing costs, according to the National Association of Home Builders.

The Mackinac Center for Public Policy illustrates how licensing requirements affect housing. Many occupations involved in building and maintaining housing require licensing. The state’s many occupational licenses increase costs to the consumer.

If a homeowner wants concrete poured, a hired contractor must have a license. The contractor must have 60 hours of training. The contractor also must take a residential builder exam, or a maintenance and alteration contractor exam, or have a military waiver. This person also must pay a $70 fee for the license.

If a homeowner wants to hire someone to build an asphalt driveway, by contrast, no license is needed. Other housing-related occupations, however, require a government-issued license. These include painters, carpenters, insulators, and tile and marble installers. People who lay wood floors, install siding, or add a new roof also need a license.

Suppose you want to get professional help for other kinds of housing work. In that case, your contractor does not need a license: drywall, sewer and septic, plaster, paving, carpeting, vinyl flooring, fencing, awning, and house moving.

Health and safety concerns may appear to drive the move to create an occupational license, but that is not always true. Sometimes the people who currently work in an occupation ask for a licensing regime as a way to keep newcomers from coming into the marketplace.

Licensing does not just affect homeowners and new construction. Landlords often increase rent to account for the costs of regulations lawmakers impose on rentals. If the “Renter’s Bill of Rights” were enacted into law, renters would likely end up paying more and perhaps have fewer options in housing.

Michigan Capitol Confidential has previously reported on how the legislation would increase rental costs. Readers who wish to reach their legislators may look up contact information on the Michigan House and the Michigan Senate websites.

Ford Motor Co. will end its pause at the BlueOval Battery Park in Marshall, but will hire 800 fewer people than expected, the automaker announced Monday. Michigan officials say the size of the project’s corporate welfare package will also be adjusted.

All told, the project is in line for about $1.8 billion in various incentives, ranging from direct cash grants to tax abatements.

Just nine months ago, in February, Ford announced plans to hire 2,500 workers at the facility, which will build components of batteries for electric vehicles. The change of plans should bring a change in taxpayer awards, officials said.

Gov. Gretchen Whitmer supported the project. When the Ford announcement was made in February, she and Lt. Gov. Garlin Gilchrist II joined company officials on stage.

On Monday she told Bridge Michigan the state will likely adjust Ford’s incentive package.

“As Ford has had to make some changes, we’ve had very clear open line of communication, and the state’s role will change as well,” Whitmer said. “When one aspect gets resized, so does the other.”

House Republican Leader Matt Hall, R-Richland Township, did not support the incentives.

“The project already provided a poor return on investment, doling out more than $700,000 per job,” Hall said in a statement. “If incentives aren’t scaled back, the reduced job plans would now leave taxpayers with an even lower return on investment — giving more than $1 million in incentives for each job created.”

Crain’s Detroit Business reports that the overall amount spent on the project will fall from $3.5 billion to $2.2 billion. As Kurt Nagl reports, the public incentives break down as fellows:

The project — called BlueOval Battery Park Michigan — received roughly $1.7 billion in state subsidies, including a $210 million Critical Industry Program grant to Ford, a Renaissance Zone tax exemption worth $772 million over 15 years, $630 million for MDOT and the Marshall Area Economic Development Alliance, and $120 million for other site prep work. The CIP grant, Renaissance Zone exemption and PA 198 industrial property tax abatement will be reduced in step with the project downsizing, MEDC spokesman Otie McKinley said.

Officials have not said how much the taxpayer money would be pared back.

Ford is teaming up with a Chinese firm, CATL, on the project. That United Auto Workers has raised national security concerns and drawn congressional scrutiny to the project.

But the political scrutiny never paused BlueOval Battery Park. It took a UAW strike, which started on Sept. 15, to do that.

About two weeks after the UAW strike began, Ford paused work at the site. The very next day, however, the Michigan Strategic Fund gave the project $65 million for site development.

The economic development agency that granted the money said it was confident the project would resume. Political officials and UAW leadership all talked about the pause as if it were a negotiating ploy.

And now that the strike is over, the pause has ended. But plans have changed.

“We are pleased to confirm we are moving ahead with the Marshall project, consistent with the Ford+ plan for growth and value creation,” the Dearborn automaker announced. “However, we are right-sizing as we balance investment, growth, and profitability. The facility will now create more than 1,700 good-paying American jobs. ...”

Ford announced plans to pause $12 billion worth in EV projects, citing low demand owing to high prices.