How Michigan's "Build, Baby, Build" Housing Initiative Impacts Custom Home Buyers in Livingston County

On July 21, 2026, Governor Gretchen Whitmer signed a package of housing bills into law under the banner "Build, Baby, Build" — a comprehensive initiative aimed at increasing Michigan's housing supply, reducing regulatory barriers, and making homeownership more attainable. For buyers considering a custom home in Livingston County, these changes raise important questions about the market, land availability, and timing. Here is what you need to know.

What the "Build, Baby, Build" initiative actually does

The initiative is not a single law but a package of policies targeting different parts of Michigan's housing shortage. The key provisions include:

• Michigan Housing Opportunity Tax Credit — A new state-level low-income housing tax credit that allows the Michigan State Housing Development Authority (MSHDA) to award $42 million annually to incentivize affordable housing construction. This credit works alongside the existing federal LIHTC program.
• Red tape reduction — Legislation that streamlines regulations for new home construction, making the permitting and approval process more efficient across the state. This includes parcel division reform (SB 23) that simplifies the process of dividing land to build homes.
• Institutional investor cap — HB 6074 prohibits hedge funds and institutional investors from owning more than 100 single-family homes in Michigan, helping to keep residential properties available for actual homebuyers rather than investment portfolios.
• Building code modernization — Updates that allow residential buildings up to four stories with a single staircase, among other efficiency improvements that affect development costs.
• $10 million Worker Housing Fund — A program that partners with local governments and employers to expand housing options for Michigan's workforce.

For the full details, you can read the official announcement at Michigan.gov.

What this means for custom home buyers in Livingston County

The new laws are designed to stimulate housing production across the state, but their impact varies by market segment. For buyers of custom luxury homes on wooded acreage in communities like Oaks of Tyrone, the effects are more nuanced than a simple "more homes = lower prices" equation.

Streamlined permitting could help build timelines

One of the most practical changes for buyers building a custom home is the reduction in red tape around permits and parcel division. The typical custom home timeline in Michigan runs 12 to 18 months from contract to move-in, and permitting delays are one of the most common causes of schedule slippage. If the state's streamlining efforts take hold at the local level, buyers could see shorter, more predictable build timelines.

At Oaks of Tyrone, Big Sky Development has already secured the necessary approvals for all 34 wooded one-acre homesites. Buyers purchasing in an established community skip the land-use permitting stage entirely — the infrastructure, lot lines, and utility connections are already in place. That head start becomes even more valuable if broader market demand intensifies under the new policies.

The institutional investor cap protects actual homebuyers

HB 6074, which limits institutional investors to 100 single-family homes in Michigan, addresses a real concern in the housing market. When large investment firms buy up residential properties, they compete directly with families looking for a home to live in. In Livingston County, where demand for housing already outpaces supply, this protection helps ensure that new construction inventory — including custom homesites — remains available for buyers rather than being absorbed into rental portfolios.

What the tax credit means for the broader market

The $42 million annual state housing tax credit is primarily aimed at affordable and workforce housing, not the luxury custom home segment. However, by stimulating production at the entry-level and mid-range of the market, the policy could reduce overall demand pressure on the housing stock. When more homes are available at every price point, the entire market functions more efficiently.

The key takeaway for custom home buyers: the "Build, Baby, Build" initiative is unlikely to change pricing dynamics for premium wooded one-acre homesites in top school districts. These lots are a finite resource, and no amount of regulatory reform creates more land in the Hartland Consolidated Schools district with mature trees, lake access, and US-23 connectivity. If anything, by making the overall housing market more active, the initiative could increase competition for the best remaining homesites.

One-acre wooded lots: still the exception, not the rule

The Livingston County 2026 Master Plan identifies housing diversity as a priority, noting that only 8% of new homes are under 1,400 square feet and that existing zoning ordinances limit the variety of housing options. While the new state laws address some of these constraints, they do not change one fundamental reality: the supply of wooded one-acre homesites in Livingston County is shrinking, not growing.

The economics of land development favor density. A developer who owns a 40-acre parcel can build 40 one-acre lots or 80 half-acre lots. The half-acre option yields twice as many saleable lots, spreads infrastructure costs across more units, and generates higher total revenue. In a policy environment that encourages more housing production, the incentive to build smaller lots only increases. Full-acre homesites with preserved mature trees become rarer, not more common, as the overall housing supply expands.

This is where Oaks of Tyrone stands apart. Every homesite is a full wooded acre, preserved intentionally as part of Big Sky Development's approach to community planning. The 34 homesites at Oaks of Tyrone are not competing with production subdivisions on quarter-acre lots. They are a different product entirely — and one that becomes more valuable as the market shifts toward density.

What buyers should do now

Housing policy changes at the state level create market motion. For some buyers, the natural instinct is to wait and see how things settle. But in the custom home market — where the product is a unique home on a specific piece of land — waiting carries its own cost.

Here is what we recommend for buyers considering a custom home in Livingston County:

• Visit the community in person. Floor plans and photos tell part of the story. Walking the wooded homesites at Oaks of Tyrone, seeing the lot lines, the mature trees, and the privacy between homesites gives you the information you need to make a confident decision.
• Understand the timeline. Building a custom home takes 12 to 18 months. If you want to be in your home by late 2027 or early 2028, the time to start the process is now. The custom home timeline includes design, permitting, construction, and finishing — each phase takes real time, and delays compound quickly.
• Lock in your homesite. With 34 homesites and a fixed number of wooded one-acre lots, the selection diminishes with every sale. View available homesites and choose the one that fits your vision for privacy, orientation, and proximity to community features.
• Talk to a lender early. Financing a custom home is different from a standard mortgage. Construction loans, lot equity, and draw schedules require planning. Big Sky Development vets and partners with experienced mortgage lenders who understand custom construction.

Why Big Sky Development's approach matters more than ever

In a housing market shaped by new policies, increasing density, and shifting buyer demand, the builder you choose matters more than the timing of your purchase. Big Sky Development has been building custom homes in Southeast Michigan since 1994 — more than 30 years of continuous construction through two recessions and a pandemic. The company's approach to land development, tree preservation, and custom craftsmanship is not a reaction to market trends. It is a philosophy that has guided every community they have built.

Every home at Oaks of Tyrone includes a 10-year in-house structural warranty — nine times longer than Michigan's state-required minimum. Homes are built with more than 96% American-made materials and labor. The owner personally visits active jobsites to oversee quality standards. And buyers work directly with Big Sky's in-house design team through every selection, from Big Sky's own showroom.

In a market where speed and volume often take priority over quality, Big Sky Development's track record is a meaningful differentiator for buyers who want a home built to last.

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