As Michigan addresses housing affordability, much of the focus has rightly been on increasing housing supply. Gov. Gretchen Whitmer and policymakers across the state have emphasized streamlining permitting, increasing production and making it easier to build the homes residents need.
Those efforts are essential. But there is another, immediate way to reduce costs for households: lowering the costs of living in the homes people already occupy.
For many families, housing costs are not limited to rent or a mortgage payment. They also include the rising cost of utilities.
Energy bills are a growing concern for many Michigan households. As families juggle the rising costs of housing, groceries and child care, utility bills are another expense that can strain already tight budgets. What often goes unnoticed is that many of those costs are driven not just by energy prices, but by the houses themselves. Drafty windows, aging heating systems and poor insulation quietly waste energy every day.
Michigan has one of the oldest housing stocks in the country. Roughly half of homes in the state are more than 50 years old, built at a time when energy was cheaper, and efficiency was not a priority. Today, the result is significant energy waste — and higher costs for residents.
The opportunity to change that is substantial. Analysis from national experts estimates that cost-effective energy improvements in Michigan homes could reduce their energy use by about 25%. These improvements could deliver approximately $3.2 billion in annual utility bill savings, with the average single-family household saving about $714 per year.
The encouraging news is that many of the solutions are straightforward. Air sealing, insulation and modern heating and cooling systems can significantly reduce energy use while improving comfort.
Improving the efficiency of existing homes also supports broader policy goals. As Michigan works to expand housing supply and reduce housing costs, improving the performance of existing homes can deliver immediate affordability benefits. At the same time, reducing overall energy demand helps relieve pressure on the energy system and supports long-term cost stability.
These investments also deliver economic benefits across Michigan. Home energy upgrades are carried out by local builders, HVAC technicians, electricians and other contractors — supporting good-paying skilled trades jobs that cannot be outsourced. Much of the spending on these upgrades flows through local businesses that are rooted in their communities. These businesses hire locally, train workers and reinvest in the local economy. For policymakers, this means that investments in home energy improvements not only reduce costs for residents but also strengthen Michigan’s workforce and local economic development.
The challenge is not a lack of solutions, but access. While many energy improvements pay for themselves over time, upfront costs can be a barrier for households.
Programs that connect residents with trusted contractors, clear information, and accessible financing options can help more families move forward with upgrades. Michigan Saves, for example, partners with credit unions to finance approximately $100 million in home energy improvements each year. But the need across Michigan’s housing stock is far greater.
Meeting that need will require a mix of solutions, including financing, incentives, and utility programs that make upgrades more accessible to households across income levels.
If Michigan is serious about addressing affordability, we must also focus on improving the homes people already live in.
Every attic sealed, every outdated furnace replaced and every home upgraded to waste less energy can translate into lower monthly costs for families. Improving homes may not always dominate headlines, but it is one of the fastest and most cost-effective ways to make everyday life more affordable.
Sally Talberg is the CEO of Michigan Saves, the nation’s first nonprofit green bank. Dawn Crandall is the Executive Vice President of Government Relations of the Home Builders Association of Michigan.
This article originally appeared on The Detroit News: Michigan can lower homeowner costs with energy efficiency | Opinion
Reporting by Sally Talberg, Dawn Crandall, The Detroit News / The Detroit News
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