For officials in the city of Petoskey, a good portion of 2024 was spent passing policies, cutting ribbons and gathering funding to address the critical need for housing.
The problem is nationwide. Experts say there's a massive shortage of homes — somewhere between 4 and 7 million across the country. But the issue is felt acutely in northern Michigan due to its tourism-based economy emphasizing short-term rentals and vacation homes.
Still, officials here say they're optimistic about opportunities for year-round housing but there’s still work to be done in the new year.
Emmet County needs to build about 900 new rental units and over 2,500 new homes in the next few years in order to keep up with population growth according to the 2023 Housing Needs Assessment by the advocacy group Housing North.
Public outreach combined with an election year put advocacy efforts at an all-time high according to officials like Nikki Devitt who leads the Petoskey Regional Chamber of Commerce.
“Everybody knows housing is an issue whereas in 2017, 2018 people were like, ‘for who?’" Devitt said. “People are understanding that addressing the housing needs is essential to our economy and way of life.”
New tools and incentives from the Michigan Legislature also paved the way for more housing opportunities.
An amendment to the Brownfield Redevelopment Financing Act in 2023 opened up new incentives for developers to turn those sites into housing projects. Brownfield sites are places like abandoned factories or closed-down businesses.
What could be one of the largest housing projects in the region is planned for the brownfield site of the Michigan Maple Block Company in Petoskey. The site was chosen to eventually become an apartment complex with about 200 units.
Petoskey also celebrated the groundbreaking of the Lofts at Lumber Square, a 60-unit, long-term apartment building located on Emmet Street.
Both of these developments are expected to welcome tenants in 2026.
Ongoing for-sale home development also made some progress in 2024.
A development by Manthei Construction called Pine Ponds broke ground in 2023. A grand opening for the first homes built was held in August, 2024. The goal is to eventually build over 120 new homes.
At the same time, 38 more homes are being built in Alanson by the Northwest Michigan Habitat for Humanity. The neighborhood is expected to be complete in 2025.
Andrea Jacobs is the Project Manager for this and she says beyond that neighborhood, Habitat for Humanity plans to build 10 to 15 homes per year moving forward. The goal is to get more Emmet County workers to live within Emmet County borders.
“50% of our workforce lives outside of Emmet County … and commuting is expensive," Jacobs said. "Energy wise, time wise, financially and it leads to a relationship basically, with neither community, neither where you live or where you work, because so much of your time is traveling in between.”
There are also smaller projects planned within Petoskey city limits.
Gov. Gretchen Whitmer’s office recently announced the redevelopment of the second floor above the City Park Grill will receive funding through the Michigan Economic Development Corporation's Revitalization and Placemaking program.
The project received $566,170 to fund the construction of 5 units along with the installation of solar panels on the roof and an automatic fire suppression system throughout the first and second floor.
“The City of Petoskey is proud to partner with Wineguys Holdings to revive a blighted, underutilized upper floor of a historic Downtown restaurant into 5 workforce housing units,” City Manager Shane Horn said in a statement. “This local, community-minded investment team understands the challenges of housing affordability in our region and is committed to being part of the solution.”
The Little Traverse Housing Partnership compiles updates on all active housing projects in the Petoskey area in its quarterly newsletter.
