Four of the Biggest Housing Projects Coming Online in 2026

Communities and developers tackle northern Michigan’s housing gap

Northwestern Michigan is building on renewed vigor, community cooperation, and financial creativity as it tackles its large regional housing shortages.

According to Traverse City-based Housing North, a nonprofit focused on building, strengthening, and advocating for affordable, sustainable, and workforce housing, our region faces an overall housing gap of 31,267 (8,813 rental units, 22,455 for sale units) through 2027.

Housing North Director of Community Engagement Shelly Charron says the region’s largest rental gap by affordability level is for households earning up to 50 percent of the Area Median Household Income (AMHI), with an overall shortfall of 5,014 units, representing well over half of the region’s overall rental housing gap.

However, Charron stressed that while that demographic is the largest, housing shortfalls are present at all income levels.

“Seeing that there is a need across the income spectrum,” Charron says, “it is hard to say that one project is more important than another. It is important for our communities to provide housing options that are suited to all ages, lifestyles, and income levels. Any housing that meets the needs of the community is important.”

Though the need is great and communities are hustling to find solutions, a variety of obstacles hinder housing development. Charron says rising construction costs, outdated zoning ordinances, and prohibitive land use regulations can frustrate development of diverse housing.

“For a project to be successful, a lot of pieces have to come together,” she explains. “Local units of government must put tools in place, such as Payment in Lieu of Taxes (PILOT) ordinances or Tax Increment Financing (TIF) districts that help create lower rents or sales prices.”

She adds that “state financing programs, such as programs through Michigan State Housing Development Authority, provide critical financing or subsidies to help make projects viable and result in a developer being able to offer rents or sale prices that are within reach for those working in our communities.”

Charron tells us the process for producing new housing for all income levels is complex and requires cooperation and creativity to ensure resulting rental and sale prices align with community needs.

“It is usually the case that many of these [development tactics] have to be stacked together to make a project pencil out so that it is affordable to those who work and live in the community. Without this support, we would not be seeing the current level of progress that we are,” Charron concludes.

Here are four projects that are under construction or should be completed in 2026 that are helping close the housing gap in northern Michigan.

1. BELLAIRE LOFTS | BELLAIRE, ANTRIM COUNTY

Rental Project: Bellaire Lofts, 617 Imagine Way, Bellaire
Scope: 50 units, 1-, 2-, and 3-bedroom townhome suites
Developer: Artemis Companies, a Grand Rapids-based real estate firm specializing in development and management, along with individuals Derek Coppess and Isaac Oswalt
Price Range: for workers earning up to 120 percent of Antrim County’s AMHI
Status: Final stages of completion; applications are being accepted for leasing

A little outside town on Bellaire’s far west reaches, the Bellaire Lofts project has revitalized a brownfield area. The 50-unit development sits atop a 19-acre former gravel pit. A Michigan State Housing Development Authority (MSHDA) grant for this project requires at least 50 percent of the 144 suites to be rented to residents at or below 65 percent of Antrim County’s AMHI for at least 15 years. The remaining units will be leased to residents at 66-120 percent of the AMHI. Rents will range from $825 for a single suite in a townhome to $2,400 for a full 2- to 3-bedroom, 3-bath townhome. The property qualified as eligible property under the Brownfield Redevelopment Financing Act.

2. COTTAGES AT CORNING | FRANKFORT, BENZIE COUNTY

Ownership Project: Cottages at Corning, corner of 9th St. and Corning Ave., Frankfort
Scope: four 2-bedroom, cottage-style, single-family homes
Developer: Housing Trust of Benzie, a Frankfort-based nonprofit organization dedicated to creating and sustaining affordable, attainable housing for people who live and work in Benzie County
Purchase Price: 30 percent below appraisal
Status: Construction underway

Through a purchase agreement with Frankfort’s Family of Faith Nazarene Church, Housing Trust of Benzie acquired land for Cottages at Corning, the second of its four-unit housing initiatives designed to provide homes that households earning 60–120 percent of AMHI can afford.

Cottages at Corning follows the same model as its predecessor, Grove Place, HTB’s flagship ownership model near the intersection of M-22 and M-115 in Frankfort. Those four 3-bedroom, 2-bath units were priced 25 percent below appraisal value. Cottages at Corning, Frankfort’s first middle income housing construction in the last 15 years, is offering 2-bedroom units at 30 percent below appraisal price.

“We now know that each housing project will be individually priced,” the Housing Trust of Benzie website says. “But keeping our mission at the forefront is now a proven model that puts Benzie County families and communities first. Our model, where the land trust owns the land and leases it to homeowners, helps keep home ownership within reach.”

3. LOFTS AT LUMBER SQUARE | PETOSKEY, EMMET COUNTY

*pictured

Rental Project: Lofts at Lumber Square, 900 Emmet St., Petoskey
Scope: 60-unit workforce housing project with 1-, 2-, and 3-bedroom apartments
Developer: Haan Development and Northern Homes Community Development Corporation with support from the Petoskey-Harbor Springs Area Community Foundation, Michigan Economic Development Corporation and Michigan State Housing Development Authority
Price Range: Households earning 80-120 percent of the AMI
Status: Currently leasing

Six years in the making, Petoskey’s $17 million Lofts at Lumber Square development aims to help alleviate the workforce housing shortage in Emmet County. The 60-unit community in Petoskey’s Old Town Emmet provides another housing option for local workers, individuals, and families. The building is designed to meet the needs of “missing middle” or middle-income community members.

Developers used over $4 million in donations to leverage grants and low-interest loans. In completing the project, a number of governments and organizations came to the table. Aside from the aforementioned, other partners included Emmet County, City of Petoskey, First Community Bank, and Michigan Department of Environment, Great Lakes, and Energy.

4. THE FLATS AT CARRIAGE COMMONS | TRAVERSE CITY, GRAND TRAVERSE COUNTY

Rental Project: The Flats at Carriage Commons, 1371 Carriage View Ln., Traverse City
Scope: Multifaceted 50-acre complex on northeast corner of LaFranier and Hammond Roads in Garfield Township features five multi-family buildings with over 200 units; 87,000 square foot Bay Area Transportation Authority hub with operations center, maintenance/service facility, park-and-ride area, and parking garage; 15 single-family Habitat for Humanity homes; and a stand-alone childcare facility
Developer: Bay Area Transportation Authority and Traverse City Housing Commission
Price Range: Rental units at $680 and $820 per month, including all utilities
Status: Final stages of completion

Winding up soon, this one-of-a-kind, $90 million project addresses critical transportation and housing needs in Traverse City. Developers of the Flats at Carriage Commons hope their brainchild will be a model for other communities struggling with similar challenges.

Aside from its much-needed housing, the complex will also serve to alleviate downtown traffic congestion by offering a transportation hub for BATA buses connecting to various routes, as well as a park-and-ride facility with 40-car parking capacity. Residents of the 15 Habitat for Humanity houses and the 200 apartment units can take advantage of sidewalks and multi-uses paths that border the property. And as an added benefit, about 20 acres of nearby forested wetlands will be permanently preserved, keeping intact the headwaters of the Mitchell Creek.

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