ALPENA — Housing shortages aren’t overcome overnight, but some progress has been made in addressing the housing crisis in Northeast Michigan.

In Alpena County alone, an estimated 1,600 housing units are needed, but it could take years and millions of dollars of investment from the local, state, and federal governments and private investors before the housing market improves.

Local leaders from the area housing task force, the Alpena County Land Bank, economic development firm Target Alpena, and Habitat for Humanity Northeast Michigan are working to unravel the housing problem and construct new housing of all types.

Progress may be slow, but, behind the scenes, talks with state and federal developers and other partners continue the push to improve the housing issue.

Alpena Chamber of Commerce Economic Development Coordinator Lenny Avery said housing doesn’t just spring out of nowhere, and the Alpena area had to start at the bottom in its planning process. He said the county landbank was able to acquire grants that helped remove some old houses on Bedford Street to make the property ready for construction of new homes, and an additional grant was received to have a housing assessment done.

Avery said the data from the assessment was eye-opening, because it showed that about 17% of people in Alpena live in poverty. He said that data is not attractive to potential developers who have to navigate high material costs and high interest rates to develop housing. Because they want a decent return on their investment, they have to charge high rent and sale prices, which many in the area can’t afford.

That, Avery said, is why it is challenging to get housing developers to build in Northeast Michigan.

“That really makes it hard for investors, because we aren’t Traverse City or Petoskey,” he said. “Our markets are totally different, and what people can afford there people here may not be able to afford.”

To overcome the challenges, Avery said the state needs to find a way to allocate more money to rural areas and developers who want to build housing. He said subsidies can help developers offer lower prices and still get their money back and a slight profit on their investment.

“If we don’t take advantage of the programs that are out there, and, we don’t get the buy-in from the government,” Avery said, “this could linger for 30 to 40 years. We need subsidies to be able to really get the ball rolling.”

At least one project may add some homes to the local market.

There is a proposed housing project for seniors on U.S.-23 North called the Gardens of Alpena, which would offer 68 independent living units and an additional 60 housing units for assisted living and memory care. When and if seniors begin to move into that new complex, they could leave their homes, putting more houses on the market.

If that project becomes a reality, it is expected it wouldn’t be completed until sometime in 2026.

Other proposed housing projects have fallen to the wayside because of the cost of investment, rate of return, or because of other logistics.

A developer intended to create apartments above commercial businesses on the property at the foot of the 2nd Avenue bridge, but it appears that project is no longer in the cards.

Another project, in which a developer was interested in building as many as 400 new homes near the Gardens of Alpena, also seems to have died. The developer had a purchase agreement with Alpena city government, which owns the property, but the Alpena Municipal Council voted earlier this month to terminate the deal because officials said the developer did comply with the conditions of the potential sale.