DC Structures
Why ADUs Are Booming in Michigan
It’s no secret: Michigan is dealing with rising home prices and constrained housing inventory, and that pressure is reshaping what homeowners can realistically build and afford across the state and in many local communities. In 2024, the median home price in Michigan was about $253,333, a 4.7% increase from 2023. Michigan property prices have risen roughly 45.6% over the last five years, and the market is sitting at around two months of inventory, underscoring ongoing affordability challenges for many buyers and families.
As for Accessory Dwelling Units (ADUs), Michigan does not have a single statewide accessory dwelling unit law; instead, cities and townships set their own ADU rules, with places like Ann Arbor, Grand Rapids, and other municipalities beginning to use accessory dwelling units as one tool to add more flexible housing options on single-family lots.
Built for longevity and designed with intention, our prefabricated ADU kits offer a practical way to expand a property’s potential without changing the character of a neighborhood or sacrificing main-home living space. Our kits also provide a faster, more organized route to high-quality construction, which is especially helpful in Michigan’s patchwork of local zoning and permitting requirements, and for homeowners who want clear plans, features, options, and project details before they start.
Our ADU Kits
Our prefab ADU kits provide a faster, more efficient way to build a backyard house on your Michigan property. Each kit is designed to be custom-tailored to local climate conditions, zoning requirements, and lifestyle needs, and through our customizable ADU models you can adjust everything from layout to bedrooms to finishes, with full plan details, flexible options, and dedicated services for every model.
Depending on your preferences, you can prioritize an open-concept living area, additional storage, or even a gourmet kitchen, as long as it fits your property and local permitting requirements, ultimately creating a compact living space that works for your day-to-day life.
Sitka
SitkaCrafted for backyard use, whether as a guest suite, artist studio, or creative workspace, our Sitka ADU Kit offers limitless flexibility within a compact framework.
Average Cost to Build an ADU in Michigan
An accessory dwelling unit in Michigan will usually fall into a similar range as many ADU projects nationwide, with a lot of complete backyard units landing somewhere around $150,000 to $300,000 depending on size, layout, and finish level.
On a per-square-foot basis, recent ADU construction breakdowns in Michigan commonly place new detached accessory dwelling units in roughly the $180 to $400+ per square foot range, influenced by factors like design complexity, local labor, and material choices. Variables like site access, foundation work, utility connections, and whether you’re building detached new construction vs. converting an existing space (like a garage or basement) can significantly change the final price, along with finish selections like a full kitchen, added bathroom, or expanded storage.
Michigan ADUs
Permitting, Zoning & ADU Regulations in Michigan
We have an in-house architectural design team that will meet the unique requirements of your city’s zoning and regulations, with permitting services that help you navigate local permits and review timelines in Michigan. Michigan doesn’t have a single statewide accessory dwelling unit law that overrides local rules; instead, ADU regulations and zoning requirements are set by individual cities, townships, and counties, meaning what’s allowed in one community may differ in another.
In some Michigan jurisdictions, accessory dwelling units are treated as conditional or special uses in certain residential zones, while others are starting to adopt clearer definitions and pathways for attaching or detaching ADUs on single-family lots. Michigan communities like Ann Arbor and Grand Rapids have begun updating local zoning to support accessory dwelling units by clarifying where they’re allowed and what standards apply, but there is no state requirement that every municipality must allow an ADU as a matter of right.
ADU Incentives, Grants & Financing in Michigan
Michigan doesn’t currently offer widely advertised, dedicated statewide homeowner accessory dwelling unit grants or fee waivers; however, there are several housing-support programs that can indirectly help move ADU projects forward. The Michigan State Housing Development Authority (MSHDA) administers programs such as the MI-HOPE home repair and energy-efficiency funding initiative, which provides grants to participating local governments to assist eligible homeowners with improvements that may support broader property upgrades connected to an ADU project when the scope qualifies. MSHDA also operates various rehabilitation and modernization programs that support local housing efforts and can help communities pursue zoning, land-use, or process changes that expand housing options, including accessory dwelling units, at the municipal level.
Best Cities & Counties to Build an ADU in Michigan
Ann Arbor
Ann Arbor has a clearly documented accessory dwelling unit process, including an ADU planning page and guidebook that explain where ADUs are allowed, how they’re defined, and what standards apply.
Grand Rapids
Grand Rapids has an extensive list of ADU zoning FAQs, and recently adopted zoning reforms aimed at boosting housing supply and making it easier to build accessory dwelling units.
Traverse City
Traverse City has overhauled its ADU regulations, expanding where accessory dwelling units are allowed, updating standards for size, appearance, parking, and location, and requiring a formal ADU registration.
DC Structures
ADU Project Gallery
How ADUs Can Boost Property Value in Michigan
With high-demand areas across Michigan—including places like Manistee County, where a recent housing needs assessment found rental units 96–97% occupied and identified a need for 525 additional rental properties by 2027—the state’s constrained rental supply makes accessory dwelling units an attractive option for homeowners seeking flexibility and potential rental income.
Start Your Michigan ADU Journey
Ready to bring your ADU vision to life in Michigan? Our team handles permitting support, engineering, and delivery statewide, making it easy to build your prefab backyard house with confidence—whether you’re in a city with established ADU rules or a community still developing its approach.
With expert services, clear project details, and guidance on the best kit model and options for your property’s practicality, efficiency, and compact living goals, you can make a decision that feels right for your lifestyle, your budget, and your long-term plans.