How Muskegon, MI, Is Building Hundreds of Homes on Vacant Lots
Asia Mieleszko
April 4, 2024
A key feature of the program is how the city uses tax increment financing, or TIF, to finance the homes for less than for what it would cost others to build. According to Eckholm, new construction averages at about $220 to $250 per square foot to build, which would put a 1,000-square-foot “starter home” at $220,000 to $250,000. In using TIF, the city is able to deliver a similar home for $135,000 to $200,000, which more accurately aligns with the area median income, or what locals can actually afford. (Note that the city is not losing money on these projects, so the project can scale to meet demand.)
https://www.strongtowns.org/journal/202 ... acant-lots
