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Michigan lawmakers unveil plan to lower housing costs by cutting zoning restrictions

by Sophia Murphy
February 17, 2026
A A

LANSING, Mich. (WZMQ) – Lawmakers from both sides of the aisle are advancing a package of housing reforms they say could lower costs by making it easier to build homes across Michigan.

State Rep. Joe Aragona (R-Clinton Township) and state Rep. Kristian Grant (D-Grand Rapids) have worked for more than a year on what they’re calling a bipartisan Housing Readiness Package. The plan includes zoning reforms, limits on minimum lot sizes and parking requirements, and expanded authorization for accessory dwelling units, or ADUs.

Aragona said the state is facing a steep decline in new construction compared with previous decades.

“Back in 2005 there was about 54,000 single home family permits pulled in the state of Michigan. Last year there was well under 16,000,” Aragona said.

At the same time, home prices have climbed rapidly.

“In 2023 the average median home price was, I believe, around 350,000. Just a year later, it had already gone up 75,000 dollars,” he said.

Aragona and Grant say regulatory costs are a major contributor to affordability challenges. According to Aragona, builders face tens of thousands of dollars in fees and compliance costs before construction even begins.

“That’s before you buy a hammer, before you pay somebody to swing that hammer, before you buy a nail or a two by four,” Aragona said.

The package would allow duplexes in certain single-family residential zones near metropolitan areas, cap minimum lot sizes at 2,500 square feet, and limit minimum dwelling sizes to 500 square feet. It would also prohibit local governments from requiring more than one parking space per dwelling unit.

The legislation would additionally allow accessory dwelling units on parcels with single-family homes and establish clearer timelines for local governments to approve or deny development proposals.

Aragona emphasized that support for the bills extends beyond urban areas.

“We have a bipartisan support. We have a bicameral support, but we don’t have people that are only in densely populated areas. We have people from all around the state,” he said.

The bills were rolled out at an event in Lansing on Tuesday.

The bills are expected to be introduced in the House this week as lawmakers continue negotiations on broader housing and property tax policies.

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