A sign at a “The Rent is Too Damn High” rally at the Michigan Capitol Building on September 5, 2023. | Anna Liz Nichols
People who live below or just above the poverty line face a variety of challenges that exacerbate economic instability in their lives, according to a study from the University of Michigan’s Poverty Solutions initiative.
The rate of Michiganders living on incomes below the federal poverty line hit 13%, exceeding the national level of 11.5%. The study, which was released in March, also found that nearly 26% of people in Michigan live above the poverty line but are still vulnerable to economic challenges.
That means 39% of Michiganders have economic problems, according to the study, and researchers found the economic challenges people face around the state varies by region.
“26% of those people are not considered to be in poverty, so they’re often overlooked,” Patrick Schaefer, the economic security policy analyst for the Michigan League for Public Policy. “But these are the working families of Michigan. So when we were looking at benefits in the future, I think it would be good for the state if we expanded who we thought of was in need and who was deserving of benefits.”
Researchers looked at 2021 U.S. Census data relating to economic stability in every county in Michigan and found causes and possible policy solutions for poverty.
“There’s different factors driving poverty and well-being in different parts of the state, and so, there’s not a one-stop solution,” said Amanda C. Nothaft, the director of data and evaluation at Poverty Solutions. “It’s really important to look at the greater context of a region when addressing these problems.”
For example, residents of the Detroit area are especially burdened by high housing costs, according to the study. Over one-third of Macomb, Oakland and Wayne county residents pay over the recommended portion of their income on housing, and researchers say this reaches to even the most affluent communities.
Primary reasons, and potential solutions, for poverty vary across the state, but key areas for improvement include expanding affordable housing, childcare, education and food access.
Poverty can be addressed through policy, on local, county and statewide levels, Nothaft said. The roles of each government level differ, but she said this study is mainly focused on county and regional solutions to poverty. However, the state government can help with allocating specific funding and resources to communities with certain challenges, such as childcare subsidies to expand the workforce or job training so people can qualify for higher-paying jobs.
Schaefer said a key way to address poverty and near-poverty situations is through direct cash benefits. This could look like expanding Michigan’s current benefit distribution system or broader cash benefit program, like guaranteed income, according to Schaefer.
“What we are really looking at is seeing how we can give people economic freedom to pursue their interests and improve their lives, improve their communities,” he said.
Another way families had additional money was through federal COVID-19 stimulus checks. The federal American Rescue Plan Act pumped money into communities to go towards economic development, schools and families. Now, many of those grants and stimulus checks are expiring, which has increased childhood poverty again, Nothaft said.
“Child poverty was cut nearly half, and it’s back up to the level it was before,” Nothaft said.
Regional breakdown
Different regions of the state have different economic challenges, but many of these problems can overlap or be more severe in certain counties or communities, experts said.
“One of the things that always stands out to me is some of the differences in the regions and the challenges they face,” Nothaft said.
Similarly to the Detroit region, the study identified a lack of affordable housing as the primary barrier for people in Northwest Michigan where tourism in Lake Michigan communities is a major industry. The proportion of people facing a “severe housing burden” is greater for renters than owners; 20% of renters are paying over 50% of their income on housing compared to 7% of owners. The report finds as more and more people rent, the market gets tighter for affordable places to live.
In eastern Michigan, researchers found income fell 10% lower than the statewide average, and the disparity wasn’t solely concentrated in Flint and Genesee counties. The study identified greater opportunities for post- secondary education could help raise incomes for residents in this area.
A little bit to the west, in South-Central Michigan, poverty rates are similar to the statewide average. However, Ingham County, which is home to Lansing, has a higher poverty rate than its neighbors in the region, Clinton and Eaton counties.
The study identifies that many families in Lansing live in “deep poverty,” which means earning incomes 50% below the poverty line. Similarly to the eastern region, education is the central focus on improving poverty rates. However the study recommends improving elementary and high school education opportunities and expanding access to pre-K, a priority for Gov. Gretchen Whitmer.
Counties in East-Central Michigan experience food insecurity at higher rates than other areas of the state. The region also has the highest utilization rates of SNAP benefits, but the study found the program either does not cover enough of people’s food needs or does not provide benefits to every food insecure Michigander in the area. Many communities in the area are also considered a food desert, and it might be difficult for people to access transportation to grocery stores.
Children are facing poverty in northeastern Michigan at higher rates than any other areas of the state. Researchers attribute this to low employment rates, which fluctuates seasonally. Over half of people living in the region are not in the workforce, and the study recommends expanding access to childcare and workforce development for permanent employment.
While Southeast Michigan has high median income rates compared to the rest of the state, disparities in education and poverty between Black and white residents are wide, the study finds. For example, white residents’ median income is 60% higher than the median income of Black residents in the region, and that percentage is higher in Washtenaw, Monroe and Jackson counties.
Michiganders living in Southwest counties face similar economic challenges to other regions in the state, but some communities suffer more than others, like Albion and Battle Creek. The study recommends more economic opportunity, like higher paying jobs and more education, is important for this region of the state.
In the Upper Peninsula, the cost of living can be high, with an expensive housing market and the necessity of cars or other personal transportation. The rural character could also mean people travel far for necessities like food. The high cost of living, and low median incomes, makes economic development important, the study finds. Researchers recommended expanding access to broadband, so industry and higher education can settle comfortably in the U.P.
Finally, in the western region, researchers recommend investing in Lake County, whose childhood poverty rate doubles the state average and median income is the lowest in Michigan. Like many of the other regions, economic development and education opportunities are important for people living in the area.
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