Michigan Gov. Gretchen Whitmer signed a package of housing bills on July 21 that bars large institutional investors from buying single-family homes in the state, imposes civil fines of up to $25,000 per violation, and pairs the restriction with new tax credits and zoning changes aimed at expanding the state’s housing supply, according to the governor’s office.
The investor restriction, House Bill 6074, targets large corporations that own more than 100 homes in Michigan, a threshold state officials describe as tougher than the recently enacted 21st Century ROAD to Housing Act, the federal law that restricts institutional buyers owning more than 350 single-family homes nationally. Bill sponsor state Rep. Karl Bohnak, R-Deerton, said the measure drew “tremendous” bipartisan support. “This bill ensures that Michigan families are not squeezed out of the housing market by large corporations,” Bohnak said.
“Every Michigander deserves an affordable, quality place to call home,” Whitmer said in a statement announcing the signing. “I’m proud to sign these bills that cut red tape, lower housing costs, and expand our housing stock available to working families looking to put down roots.”
The legislative package extends beyond the investor ban. It creates a new Michigan Housing Opportunity Tax Credit, designed to work alongside the federal Low-Income Housing Tax Credit program; the state expects to invest $42 million in credits to help create 2,500 new affordable units, with eligible developments required to reserve units for renters earning at or below 60% of area median income. The state budget separately adds $50 million to Michigan’s Housing and Community Development Fund, including $5 million earmarked for permanent supportive housing.
On the construction-cost side, the package rolls back a requirement that four-story apartment buildings include more than one staircase β Michigan had already permitted single-staircase buildings up to three stories β a change the state estimates will cut construction costs on four-story buildings by 10%. The provision, House Bill 5571, was sponsored by state Rep. Stephen Wooden, D-Grand Rapids, who said it will encourage more small-scale apartment development.
The Michigan Realtors trade association backed the package. “Michigan Realtors applauds Governor Whitmer and the Legislature for advancing commonsense, bipartisan housing policies that remove barriers to building more homes,” said Brad Ward, the group’s vice president of public policy and legal affairs. “At a time when Michigan faces a significant housing shortage, increasing inventory remains the most effective way to improve affordability and expand homeownership opportunities.” Lauren Strickland, executive director of Abundant Housing Michigan, said the zoning and building-code changes reflect “a foundational approach” to the state’s housing shortage.
The bills follow a statewide housing plan Michigan launched in 2022 and a goal set this year of adding 115,000 new or rehabilitated housing units. Roughly 73.2% of Michigan’s housing stock is owner-occupied, well above the national average, even though Realtor.com’s state-by-state affordability report card has given the state a “C” grade for two consecutive years.
What it means: The bill signing and its specific terms β the 100-home investor threshold, the $25,000 civil penalty, and the funding figures β are confirmed by the governor’s office and are established fact. Whether the investor ban meaningfully changes housing affordability in Michigan is a separate, unresolved question: institutional investors are one of several factors economists cite in tight-inventory markets, and the bill’s effects will depend on enforcement and how narrowly “large, private institutional investors” is applied in practice. The trade-group and advocate support quoted here reflects each organization’s own stated position, not an independent assessment of the law’s likely impact.
What to watch: Whether other states move to adopt investor-ownership caps tighter than the new federal threshold, following Michigan’s approach, and how enforcement of the 100-home limit unfolds once the law takes effect.
