LANSING, Mich. — A new federal housing law takes effect at midnight Friday with or without President Donald Trump's signature, as a Lansing property owner and a Michigan State University economist say the region is positioned to benefit.
The 21st Century Road to Housing Act aims to reduce regulations and encourage more standardized, scalable building amid a nationwide housing crisis.
WATCH: FEDERAL HOUSING LAW TAKES EFFECT AMID NATIONWIDE AFFORDABILITY CRISIS
What the bill targets
Oren Ziv, an economics professor at Michigan State University, said construction costs, not land availability, are at the root of Michigan's housing shortage.
"There are a lot of specifics in the bill and each of those specifics are like getting into the nitty gritty of the kinds of things that we think are probably increasing costs for construction," Ziv said.
Ziv said if the bill delivers on cost reduction, renters could eventually see relief.
"So ideally if this bill reduces the cost of construction going forward, that would also directly reduce the cost for housing which would be wonderful," Ziv said.
Ziv does not expect lower rent rates immediately, but said the Lansing area has an advantage over much of the country.
"We're blessed unlike other parts of the country and even parts of Michigan, our area has a lot of supply of land. We can still build housing and that's not the case in most places," Ziv said.
A local example of government-assisted housing
Lior Ron, owner of Lansing Home Pros, manages more than 200 buildings in the area. He said a $250,000 grant his company received demonstrates how government assistance can support affordable housing.
The project, Ron says, is expected to be completed in the fall.
"When we work along with government, we are able to build faster and properties that are extremely dilapidated into high rent properties while keeping rent completely affordable," Ron said.
Ron said he welcomes the federal legislation and the longer-term thinking it represents.
"It's nice to see the government planning a little bit long term. Not just what's going to happen tomorrow and next year but how are we going to affect the housing market in a long-term period," Ron said.
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