From creating the Michigan Housing Opportunity Credit to banning private equity firms from buying up housing, this plan will help every hardworking family find a place to call home here in Michigan
LANSING, Mich. (May 14, 2026) — Affordable housing is in too short supply across Michigan. Last year, just one in five homes were sold to first-time homebuyers, and the median age of a first-time homebuyer hit an all-time high of 40 years old. To address this housing crisis, Senate Democrats introduced legislation today that would crack down on private equity firms gobbling up housing and create a tax credit to lower the cost of building homes.
Introduced by Sen. Veronica Klinefelt (D-Eastpointe), Senate Bill 971 would make housing more accessible for families — not corporate investors — by prohibiting out-of-state investment groups from owning more than 10 single-family homes in Michigan. The legislation aims to level the playing field for prospective homebuyers, who are too often forced to compete with large investors able to make cash offers or waive inspections.
“Michigan homes should go to Michigan families, plain and simple. Prospective buyers seeking their dream home shouldn’t be outbid by private equity firms,” said Sen. Klinefelt. “This commonsense bill will make housing more affordable and accessible and benefit our neighborhoods as more people are able to buy a home and build a life here in our state.”
In addition to freeing up existing housing, Sen. Jeff Irwin’s (D-Ann Arbor) Senate Bills 966–968 would create the Michigan Housing Opportunity Credit to help make building new homes more affordable as well. This would supplement the existing federal housing credit, allowing the state to draw down additional federal funding to invest in the building of over 2,500 new homes every year.
“We need more housing to bring down rents and to create units that people can actually afford,” said Sen. Irwin, Chair of the Senate Housing and Human Services Committee. “Michigan currently relies only on federal tax credits to build more affordable housing, while most states have their own housing incentives in place. This legislation would allow Michigan to set up a similar credit system and invest more in housing that meets the needs of every income level.”
This legislation is part of Michigan Senate Democrats’ broader A Michigan You Can Afford agenda. The proposal includes plans to make groceries, gas, and other household needs more affordable, cut utility bills, lower healthcare costs, and more.
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