Housing is a tremendous challenge for many communities, especially those with characteristics like Bay City. With the population decline between 2000 and 2010, there was a decrease in available homes (8,035 in 2000 vs. 7,856 in 2010 per U.S. Census). In addition, builders will be hesitant to build in a community with a history of population decline because it indicates there will not be a market for their properties. Bay City has taken a proactive approach to encourage housing development and is working with developers to encourage new building. This has shown success in several new projects breaking ground in the area.