Like the rest of the country, Michigan is in the middle of a housing crisis. New construction has plummeted over the past 20 years, while home prices in Metro Detroit and Grand Rapids have increased by roughly 200% since 2012. The median single-family home now costs well over three times the median household income in metro areas across the state, including over four times the household income in Grand Rapids and Traverse City, and over five times the median income in Ann Arbor. Rents have soared in Michigan, and over 50% of renters are cost-burdened in several metro areas.
Housing policy reforms are top of mind for many Michiganders and lawmakers in Lansing. A recent survey from AFP-Michigan found that most voters think housing is unaffordable, including 72% of voters under the age of 30. A majority of voters from both parties think Michigan needs more housing, and that regulations should be reformed to allow more housing supply. Recently, a bipartisan group of legislators released a collection of bills aimed at reducing red tape to allow more housing and greater types of housing to be built across the state.
The most notable reform would reduce minimum lot size requirements for single-family homes served by public water and sewer. Excessive minimum lot size requirements limit the amount of housing that can be built, reducing supply and driving up home prices. Large minimum lot sizes also limit the supply of smaller starter homes, as developers often build large homes on larger lots. Despite the fact that minimum lot sizes regulations did not come into widespread use until the 1940s, smaller lots are now illegal in many places, effectively legislating out of existence starter homes for young families. Importantly, this reform would reduce the minimum lot size but would not mandate small lots. Homeowners and developers could still build homes on large lots, but they would no longer be required to do so.
Other states and cities across the nation have been reducing minimum lot sizes in recent years. In 2025, Maine and Texas reduced minimum lot sizes for many single-family homes. Already this session, Idaho and Kansas have passed legislation reducing minimum lot sizes and allowing more starter homes. In 1998, Houston reduced minimum lot sizes to 1,400 square feet downtown and expanded the reform citywide in 2013. The city’s reform has enabled over 80,000 homes on smaller lots to be built, and Houston remains one of America’s most affordable big cities.
The package also includes permitting and petition reforms. These proposals would not change local land-use regulations but would reduce backlogs and speed up costly bureaucratic delays. One proposal would limit unnecessary and repetitive studies proposed projects would be subject to and set a time limit for reviewing studies and permit applications. A second bill would reform protest petitions in Michigan, requiring at least 60% of nearby property owners to protest zoning changes. Currently, Michigan allows a small minority of property owners to overrule local approval of new housing, disregarding local officials and other residents. Texas passed a similar reform last year, and many of Michigan’s neighbors do not even allow protest petitions at all.
Some politicians argue that these reforms unfairly intrude on local control over zoning. Yet local zoning and land-use laws across Michigan have imposed excessive red tape and regulations on property owners across the state. There is no control more local than that of a homeowner over his or her home. Rather than restrict local control, these proposals restore property rights to Michigan property owners, without sacrificing the health, safety, and welfare of all residents.
Americans for Prosperity has worked to pass housing reforms in states across the country, cutting red tape and increasing housing options for all Americans. AFP’s Roadmap for: Housing Policy Reform report includes numerous policy solutions for reducing housing regulations, several of which are included in this package. Michiganders deserve housing they can afford. These reforms will help make that possible.
Ilana Blumsack is a Senior Housing Policy Analyst at Americans for Prosperity.
