New Michigan Law Blocks Large Corporate Homebuyers

July 28, 2026 - 04:51

Michigan has passed a sweeping set of housing reforms aimed at cooling the overheated market, with the most aggressive measure being a direct ban on large corporate homebuyers. The new law, signed by Governor Gretchen Whitmer, prohibits institutional investors from purchasing single-family homes in the state, a move designed to give individual buyers a fighting chance against deep-pocketed firms. Lawmakers argue that corporate entities have been snapping up available inventory, driving up prices and squeezing out first-time homebuyers and working families.

Alongside the investor ban, the legislative package includes significant new funding for affordable housing construction and a rollback of restrictive local zoning rules. The zoning changes are expected to streamline approvals for duplexes and accessory dwelling units, often called granny flats, in neighborhoods that previously only allowed single-family homes. Supporters say this will increase housing density and supply without requiring massive new developments.

Critics of the law warn that banning corporate buyers could have unintended consequences, such as reducing the number of rental properties available and potentially slowing new construction. However, state officials are betting that the combination of blocking investors, injecting public money into housing projects, and loosening building restrictions will create a more balanced market. The measures take effect later this year, and local governments are already preparing to adjust their planning codes to comply with the new state mandates.