HB 5581

UPDATING ZONING LAW TO ALLOW SMALLER HOMES

House Bill 5581 updates Michigan’s Zoning Enabling Act to allow for smaller home sizes.

Today, some zoning ordinances impose minimum floor area requirements that effectively prohibit small homes, micro-housing, or compact starter homes. HB 5581 establishes a statewide floor for allowable home sizes to ensure that smaller dwellings remain legal to build.

What the bill does

Allows local zoning ordinances to impose a minimum dwelling size requirement of up to 500 square feet.

Why this matters

Minimum dwelling size requirements are a direct barrier to affordable housing. By requiring homes to be larger than many households need, these rules:

  • Increase construction costs

  • Exclude lower-income buyers and renters

  • Limit starter homes and downsizing options

  • Prevent creative housing types like micro-homes or compact infill units

HB 5581 ensures that smaller, lower-cost homes remain legal while preserving local authority over traditional zoning concerns like height, setbacks, and density.

By setting a reasonable statewide floor, the bill expands housing flexibility without eliminating safety standards or broader planning authority.

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