Advocacy News – May 14, 2026
What’s happening: The Michigan House has begun hearings on a package of bills focused on zoning reforms aimed at reducing construction costs and expanding access to various types of housing by creating greater consistency in local zoning requirements.
Why it matters: Michigan’s housing shortage is increasingly a workforce and economic competitiveness challenge.
- The big picture: Michigan is in a severe, systemic housing shortage estimated at roughly 119,000 housing units, impacting not only low-income households, but also middle-class families, young professionals and seniors looking to downsize.
- The workforce impact: A lack of attainable housing is making it harder for businesses to attract and retain talent – particularly in fast-growing regions and workforce shortage areas.
- What’s driving costs: Higher interest rates, rising construction costs, restrictive regulations, and inconsistent local zoning requirements have all made it more difficult to build reasonably priced housing.
By the numbers: According to the National Association of Home Builders and the Home Builders Association of Michigan:
- Regulatory costs add roughly $94,000 to the price of a new Michigan home.
- About $24,000 of that increase is tied to building code changes over the past decade.
- The estimated median cost of a new Michigan home in 2025 is $448,520.
The result: Many families are being priced out of homeownership, while low vacancy rates continue to tighten rental markets across the state.
What we’re saying/doing: The MI Chamber Board of Directors recently adopted a policy supporting balanced zoning reforms and the elimination of unnecessary regulatory barriers contributing to Michigan’s housing shortage.
- The goal: Increase housing availability while supporting workforce growth, stronger communities and Michigan’s long-term economic competitiveness. The Michigan Chamber is encouraging lawmakers to pursue a balanced approach that reduces unnecessary costs and delays while establishing reasonable guardrails and greater consistency around zoning practices statewide – ultimately helping increase the supply of more attainable housing options.
The bottom line: Expanding housing supply is increasingly tied to Michigan’s ability to grow its workforce and economy.
Go deeper: Listen to the latest episode of MI Business Matters exploring our state’s housing shortage and potential policy solutions, featuring Brad Ward of the Michigan Realtors and Dawn Crandall of the Home Builders Association of Michigan.🎧Listen now.