Michigan housing advocates are pointing to Austin, Texas, as they try to build support for Gov. Gretchen Whitmer’s affordable housing agenda in the state Legislature.
Advocates say a multi-year set of zoning, permitting and code changes in Austin helped fuel the housing boom — and that the resulting increase in supply has been accompanied by a reasonable drop in rents. They argue that Michigan could see similar benefits if lawmakers advance Whitmer’s proposed Housing Readiness plan and related measures to reduce regulatory barriers.
“Different housing legislation can help us address Michigan’s housing shortage,” said Lauren Strickland, the organization’s executive director. Many Homes in Michigansaid the statement. “Similar housing reforms in Austin have been successful, lowering rents, especially in housing that serves low-income families.”
Strickland pointed to a new study from The Pew Charitable Trusts that explains how Austin’s reforms have helped spur construction growth.
“Some municipal leaders are concerned about change, understandably, but this data is a clear and objective reminder that adding more homes helps manage costs for those who need it most,” Strickland said.
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In his February State of the Union address, Whitmer outlined a housing agenda that included a new federal tax credit and a broader push to cut permit delays and regulatory hurdles. He also said that the state should make it easier to rebuild vacant and brownfield sites.
Key parts of the plan have not been officially unveiled, and the proposal is still in the negotiation stage as lawmakers weigh competing priorities.
The Pew report gives advocates a data-driven argument as they anticipate opposition from local governments and other stakeholders wary of density and zoning change.
“The law of supply and demand will never fail,” Chris Nebenzahl, vice president of rental economics at John Burns Research and Consultinghe wrote in a LinkedIn post about Austin’s experience.
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Austin’s rent growth accelerated in 2021 during the COVID-19 housing boom, similar to other Sun Belt metros. Growing tech sector activity in the region is adding to the demand, too Tesla opened a manufacturing plant in 2022 that now employs more than 20,000 workers.
Austin added about 120,000 homes from 2015 to 2024, with the largest share delivered in the last three years, according to Pew. Housing in the council rose by almost 30% in that period – more than three times the national pace.
Median asking rent fell from $1,546 in December 2021 to $1,296 in January 2026. Austin went from about 15% above the US asking rent to about 4% below it, as the population continued to grow.
In inflation-adjusted terms, city employment fell by 19% from 2021 to 2025, while national employment rose by about 10%. Rents in other high-growth Texas markets rose about 6% over the same period, contrasting the decline in Austin.
What changed in Austin
Pew’s report highlights several reforms and policy changes that have helped increase the pace of development:
Design and land use: Vertical Mixed Use zoning (since 2007) has reduced parking requirements by 60% and enabled over 17,600 units. The city also pursued targeted rezoning, city density bonuses and high-rise incentives tied to income-restricted units near the University of Texas.
Used houses and vacant lots: Changes in 2015 — including smaller lot sizes, reduced parking requirements and the removal of the second drive lane mandate — increased the ability to build ADUs on more single-family lots. From 2015 to 2024, Austin allowed 2,850 ADUs, about 7% of new single-family and townhome units.
Parking and code changes: By 2023, Austin eliminated minimum parking requirements for high-use vehicles and expanded “off-center” housing options with overlay bonuses.
Affordability plans: Voters approved up to $600 million in housing bonds in 2018 and 2022. The city’s 2019 Affordability Unlocked plan loosened height, unit caps, parking and other regulations for projects where at least half of the units are income-restricted. Density bonuses have produced hundreds of affordable units and supported towers as tall as 300 to 400 feet in some areas.
HOME Step: Adopted in 2023 and 2024, HOME allows for smaller multifamily developments — including duplexes and triplexes — and lowers minimum lot sizes from 5,750 square feet to 1,800 square feet. It also provides incentives for projects that retain parts of existing buildings and street-facing facades.
Permissions and AI: Austin’s “Site Plan Lite” and accelerated review track cut site plan timelines in more than half by 2024. The 2025 AI preview aims to flag problems early in the process.
One floor rule: The 2025 code change allows apartments up to five stories and 20 units above grade to use one story, a change supporters say would cut costs and make smaller projects less infill easier to finance.
What does it mean for Michigan
Michigan has never seen the same job and population growth as Austin, and population growth across the country has been stagnant. But housing advocates say the state’s affordability challenges are rooted in years of slow construction and local property restrictions — pressures compounded by high construction costs and limited wage growth.
State officials estimate a shortfall of 119,000 homes. I National Low Income Housing Coalition separately estimated that Michigan needs 195,000 more low-income households.
Whitmer’s allies want lawmakers to look to Austin’s experience as evidence that policy changes can increase supply and help cool rents — and as a model that can inform legislation that fits Whitmer’s agenda.
