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Michigan’s housing affordability challenges did not appear overnight. For much of the state’s history, builders responded to demand, working under relatively simple rules that allowed communities to grow organically. Neighborhoods evolved naturally, and homes remained within reach for most residents. Much of the housing that defines Michigan’s most beloved communities was built before today’s complex zoning rules existed.
That reality has changed. Over time, layers of local zoning restrictions have made it increasingly difficult to build new housing. Minimum lot sizes, excessive setback requirements, parking mandates, and even minimum home size requirements make it illegal to build many types of homes in large parts of the state. At the same time, demographic trends — including smaller households and an aging population — mean Michigan needs more housing units, even though the population is barely growing. The result is predictable: constrained supply and rising costs.
The Mackinac Center has been working with lawmakers to advance a bipartisan housing reform package now moving through the Michigan Legislature. We gave input on the bills, met with lawmakers, hosted two events, and repeatedly testified. The focus of the legislation is straightforward: Make it legal and feasible to build again.
The bills take several steps to reduce regulations that suppress housing supply. They would prevent local governments from banning duplexes and accessory dwelling units, allowing homeowners and builders to create the kinds of middle-class housing that once existed throughout Michigan communities. The legislation also limits procedural obstacles that can delay projects for years, such as protest petitions and excessive requirements for studies. The package also reins in mandates on parking, setbacks, and minimum home sizes — all of which drive up costs without improving safety or quality of life.
Other states have enacted similar laws. From Texas and Florida to Oregon and Montana, lawmakers across the country recognize that restrictive local zoning can block housing construction and make communities less affordable.
While several housing proposals circulate in Lansing — including ideas centered on subsidies or government-directed development — the Mackinac Center stays focused on supply-side solutions. Subsidies may move a few projects forward, but they cannot solve a statewide shortage if building remains illegal or excessively difficult.
Michigan’s housing shortage is fundamentally a supply problem. Restoring affordability requires restoring the freedom to build. The reforms under consideration would move Michigan closer to that goal, ensuring that families, young workers, and future residents can once again afford to live and grow here.
