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Housing affordability and availability continues to be a major issue for Michigan and the United States. One of the core powers of Michigan municipalities is to provide for land use and zoning regulations that intend to regulate the use of land and structures to meet the needs of Michigan citizens including for “places of residence.” MCL 125.3201.

Like other states, the Michigan legislature has recently introduced multiple bills that, if adopted, would preempt certain aspects of local control particularly related to housing. Presumably, these bills try to address problems with housing identified within this E-Letter. This E-Letter summarizes the current state of recently-introduced proposed legislation and gives perspective on existing state preemption of land use related issues. Information shared in this E-Letter may also help generate interest for municipalities to take a broader look at their zoning regulations on housing and to potentially develop local solutions to Michigan’s housing problem.

I. The Housing Problem

Overwhelming public polling and sources show that housing is an issue of concern throughout Michigan and the United States. For example, nationally, a Pew Research Center survey found that 69% of Americans said they were “very concerned” about the cost of housing. DeSilver, A look at the state of affordable housing in the U.S., Pew Research Center (October 25, 2024), https://www.pewresearch.org/short-reads/2024/10/25/a-look-at-the-state-of-affordable-housing-in-the-us/. The 69% polling figure was an 8% increase from 2023.

Moving to Michigan, the Michigan Housing Data Portal (created by the Michigan Municipal League (MML), Michigan State Housing Development Authority (MSHDA), and Michigan Economic Development Corporation (MEDC), reports the following findings:

1. 50% of Michigan renters and 25% of homeowners pay too much for housing.
2. Michigan permitted 208,000 new homes from 2015 through 2024, but added 397,000 more workers over that period. That calculates to 525 new homes per 1,000 jobs added (national average is 948).
3. 8% of all homes in Michigan were vacant and available to rent or for sale in 2024. The Housing Data Portal reports a “healthy availability rate” being around 5%.

Source: State of Michigan Housing Data Portal (Accessed March 1, 2026), https://mihousingdata.org/?tab=supply

The Pew Research Center source above also made some other interesting findings. First, for what it identified as entry level new homes (under 1,400 square feet), 186,000 such homes were built in 2004. Yet, that number was reduced to 87,000 in 2023. Second, of the top ten areas in the United States where median housing prices have increased the most (from 2019-2024); one of the areas was Big Rapids, Michigan.

There have been a number of reactions to the housing issue. First, local units of government have made changes to their own regulations. See https://fsbrlaw.com/2025/03/27/allowing-accessory-dwelling-units-the-pros-the-cons-and-the-current-trends/ addressing allowing accessory dwelling units to provide additional housing opportunities in a municipality. Second, the legislature has helped incentivize Housing Tax Increment Financing to assist with the economics of locating housing. https://fsbrlaw.com/2025/07/31/brownfield-redevelopment-financing-acts-newest-tool-the-housing-tif/.

Next, various states have enacted legislation overhauling housing regulations, which in some instances has eroded local control. These include states from California to Texas to Montana and have included concepts such as requirements  to allow apartment buildings in certain areas as well as duplexes and tiny homes. See M. Nolan Gray, Red State YIMBYs Lead the Way (August 25, 2025), https://www.city-journal.org/article/home-prices-texas-montana-republican-yimby#:~:text=Republicans%20in%20Texas%2C%20though%2C%20weren,pro%2Dhousing%20legislation%20this%20year and Christopher, Gavin Newsom signs law overhauling local zoning to build more housing (October 10, 2025), https://calmatters.org/housing/2025/10/newsom-signs-massive-california-housing-overhaul/

In fact, in the first half of 2025 alone over 400 bills were introduced in state legislatures that were identified as impacting housing policy. Lydia Lo,  Annie Rosenow,  Yonah Freemark, Advancing Pro-Housing Land-Use Policy at the State Level (July 25, 2025), https://www.urban.org/research/publication/advancing-pro-housing-land-use-policy-state-level.

II. The Proposed New Laws and What Do They Do?

Following the trends above, there have been four bills introduced in the Michigan legislature that, if adopted, would erode local control of certain aspects of housing regulation. There are more bills expected to be introduced. Below is a summary of the bills and what they would do.

A. HB 5529 (Land Division Act Residential Minimum Parcel Size)

1. 1. Introduced: Feb 18, 2026
   2. What it does? Amends Section 109(1)(d) of the Land Division Act to not allow a local ordinance to impose a minimum parcel size of more than 1,500 square feet (.03 acres) for a detached single-family residence if the parcel will be served by public water and sewer.
   3. Potential Concerns (Other Than Erosion of Local Control)
      • Lot size very small for any detached single family development.
      • Unclear when applicants for land split would be able to determine purpose for split.
      • What if a split is granted, but never developed?
      • Other housing types (e.g., multi-family) may be more appropriate for what could be such small housing.

B. HB 5530 (Michigan Zoning Enabling Act Minimum Parcel Size)

1. 1. Introduced: Feb 18, 2026
   2. What it does? Adds a Section 205f to the Michigan Zoning Enabling Act to not allow a zoning ordinance to impose a minimum parcel size of more than 1,500 square feet (.03 acres) for land zoned for a detached single-family residence if the parcel will be served by public water and sewer.
   3. Potential Concerns (Other Than Erosion of Local Control)
      • Lot size very small for any detached single family development.
      • The language as drafted may not just impose the prohibition on minimum lot size to single family residential land uses but may impact an entire zoning district that provides for the land use.
      • Other housing types (e.g., multi-family) may be more appropriate for what could be such small housing.

C. HB 5531 (Michigan Zoning Enabling Act Site Plan)

1. 1. Introduced: Feb 18, 2026
   2. What it does? Amends Section 501 of the Michigan Zoning Enabling Act to allow studies to review site plan applications, but require making a decision on a site plan within 60 days after receipt of such a plan.
   3. Potential Concerns (Other Than Erosion of Local Control)
      • 60 days may not be enough time to review an application. Further, submitted site plans can be incomplete.
      • Many zoning ordinances do not provide for formal site plan review for single family housing.
      • May unintentionally cause needing to decide on special land uses (which are submitted with a site plan) to also be decided within 60 days.
      • Planning Commissions only have to meet four times a year. See MCL 125.3821(1). 60 days to consider a site plan may not be enough time for smaller local units of government to meet on a site plan and consider any public comment at public meetings.

D. HB 5532 (Village and City Protest Petitions)

1. 1. Introduced: Feb 18, 2026
   2. What it does? Amends Section 403 of the Michigan Zoning Enabling Act to make protest petitions on zoning ordinance amendments in cities or villages to have a higher signature requirement if related to increasing the authorized number of dwelling units.
   3. Potential Concerns (Other Than Erosion of Local Control)
      • May be challenging to determine whether a zoning ordinance amendment increases dwelling units or not.
      • Adds criminal penalties related to petition conduct, which could possibly happen by mistake (e.g., signing a petition twice).

The concept of state law preemption on development issues is not new. The general rule is that municipalities may control and regulate matters of local concern when such powers are conferred by the state. Deruiter v Twp of Byron, 505 Mich 130, 140; 949 NW2d 91 (2020). As identified above, the Michigan Zoning Enabling Act allows for the regulation of land use matters.

Nevertheless, the state legislature can remove the ability for locally controlled issues through preemption. One form of this is direct preemption where a local regulation would directly conflict with state regulation (e.g., a zoning ordinance banning accessory dwellings units, but state law providing that they must be able to be sited). Id.

Various forms of preemption already exist for certain developments. Below are some examples.

A. Natural Resource Extraction: Municipalities cannot prohibit the mining or valuable natural resources from properties by zoning regulations unless “very serious consequences” would occur. See MCL 125.3205(3).

B. Renewable Energy Land Uses (PA 233 of 2023): State legislation allowing certain utility-scale renewable energy projects to bypass any local zoning review. See https://fsbrlaw.com/2024/01/05/renewable-energy-projects-how-should-your-township-adjust-its-zoning-approach/.

C. Oil and Gas: Counties and townships cannot regulate or control the drilling, completion, or operation of oil or gas wells. See MCL 125.3205(2).

D. Commemorative Signs: Zoning Ordinance cannot regulate or prohibit signs on a building commemorating firefighters, police officers, corrections officers, armed forces members, among others. See MCL 125.3205d.

E. Adult Foster Care Facility Licensing Act / Qualified Residential Treatment Programs: Section 206 of the Michigan Zoning Enabling Act mandates that certain land uses must be treated as residential and permitted in all residential zones (as well as cannot be subject to needing special land use permits). These include, but are not limited to, state licensed residential facilities, certain facilities in the adult foster care licensing act, and certain qualified residential treatment programs land uses.

III. Considerations for Your Municipality and Conclusions

Although not unheard of and perhaps necessary in some instances, state laws eroding how local governments can regulate land use and development is something your municipality should pay close attention to. Your municipality may want to contact its legislators to offer feedback and thoughts on the proposed legislation above and to offer potential thoughts on alternative solutions to the housing problem. One thing to consider is how state mandates may be inappropriately “one size fits all” and not appropriate in every community. They also inhibit local governments serving as “laboratories of democracy” developing innovative solutions on their own.

On a more practical level, municipalities should think about their zoning ordinances / other laws and what may be helpful reforms to help address these issues. Some ideas, if applicable, could include:

1. Reviewing minimum lot sizes, setbacks, lot coverage requirements, and other items that may be dissuading housing development.
2. Potentially removing special land use review for certain land uses like duplexes or multi-family in appropriate land use districts.
3. Consider authorizing accessory dwelling units in appropriate areas.
4. Taking a comprehensive look at the boundaries of a municipality and determining where denser housing options may be appropriate. Then creating potentially new zoning districts to accomplish providing spaces for such land uses.
5. Setting up frameworks to provide Housing TIFs to encourage development.
6. Working with state stakeholders to consider alternative legislative ideas that would not blanket erode local control, but instead provide tools municipalities could use to identify local housing needs and local solutions (e.g., providing a means for land use studies and goals-based master planning).

In conclusion, housing is an opportunity for Michigan municipalities to address in a manner best suited for their constituents. The housing problems are complex and affected by many variables— not just local zoning. However, local zoning reforms may be something to consider. Do not hesitate to contact our firm for any input on current zoning and housing regulations.

By Kyle A. O’Meara

This publication is intended for educational purposes only. This communication highlights specific areas of law and is not legal advice. The reader should consult an attorney to determine how the information applies to any specific situation.