Building A Home In Michigan | Why EVERYONE Moving To Michigan Builds A New Home
- Andrew McManamon
- Jun 9
- 7 min read
Thinking about moving to Michigan? Let me guess—you’ve looked at a few homes in person or on home search sites and thought, ‘Why do I feel like a mouse trying to find the cheese in this choppy puzzle piece of a Smithsonian home?’ Don’t worry, you’re not alone. I’m going to break down several reasons why so many of my clients and people moving to Michigan skip the old houses and go straight for building new ones—and trust me, it’s not just about avoiding shag carpet. Let’s get to it.
Michigan’s housing market? Let’s just say it’s got more dents, scratches, and rust than cars in a junkyard. A lot of the homes here were built well before 1980—you know, when wood paneling was ‘in’ and insulation was ‘iffy.’ According to the National Association of Home Builders, nearly 60% of homes in Michigan were built before 1980, compared to the national average of 38%. Many of these older homes reflect the post-war boom, and while they have their charm, they often come with outdated layouts and systems that require significant updates.
Newcomers take one look at these houses and think, Do I want to live in a time capsule? Does the cost and time it takes to fix this place up and make it my own outweigh buying something more expensive and new?
Most times, believe it or not, no.....
That’s why there’s such a big trend of people moving to Michigan and building new, instead of purchasing used.
Building A New Home In Michigan
New Home Preferences
The most obvious reason people are building new when they make the move to Michigan is when you build new, you can design it your way. Want an open floor plan? Done. A giant walk-in closet for your endless collection of winter coats? Absolutely. A bathroom so big it feels like a spa retreat? Say no more. When you buy an older home, you’re working with what someone else thought was a good idea 40 years ago. And spoiler: avocado-green bathrooms were never a good idea paired with the dark chocolate carpet. Customization is a huge draw for new builds, allowing you to adapt your home for specific family needs, whether that’s adding a dedicated home office, a playroom, or even a soundproof room for virtual meetings or creative projects.
Let’s talk about modern conveniences. Michigan’s older homes don’t have smart thermostats or USB outlets. They have... wallpapered thermostats and outlets that might spark if you plug in your phone. More times than not, you’re dealing with ungrounded two-prong outlets. New builds come with all the bells and whistles, like kitchen islands bigger than some used homes’ actual kitchens. New homes also offer energy-efficient HVAC systems and LED lighting that reduce utility costs. According to the U.S. Department of Energy, homes built after 2000 use about 20% less energy than those built before 1980. On top of that, many new builds include pre-wired smart home setups, allowing seamless integration with systems like Alexa or Google Home. Some builders even offer solar panel options or EV (electric vehicle) charging stations—perfect for eco-conscious homeowners or those who drive electric cars.
Building A New Home In Michigan
Used Homes In Michigan
On top of making a home your own, there’s always the unknown about a used home. Michigan winters are no joke. If you’re in an older home, you’re basically throwing money out the window—literally, because the windows are probably single-pane, and most likely you’ll have a few bad seals that cause quite a bit of drafting. Insulation in the walls? Thinner than your patience when someone is driving 20 miles per hour under the speed limit. Poorly insulated homes can lose up to 25% of their heat through outdated windows. New builds come with insulation that is brought up to current building code, which is a night-and-day difference from what building codes were in the 60s and 70s. Modern materials help maintain indoor temperatures, saving significantly on energy bills. Many new builds also come with Energy Star-certified appliances, reducing utility costs even further. The long-term savings in heating and cooling alone can amount to thousands over the lifespan of the home.
Building A New Home In Michigan
Michigan Fixer Upper
Replacing windows and insulation is one thing, but if you’ve ever dealt with a true fixer-upper, we call those ‘a project that lasts longer than your mortgage.’ A lot of used homes here need work just like most homes do, but keep in mind homes deteriorate faster through changing weather. Sure, a fixer-upper sounds romantic until you’re knee-deep in drywall dust, wondering if you’ll ever have a functioning bathroom again. That’s me currently—but hey, the air mattress has been nice! With new builds, you’re in, you’re settled, and you’re not fighting with contractors—just maybe the builder on timelines, depending on who you go with. Plus, new builds come with warranties that cover major systems for several years, giving you peace of mind. In some cases, builders also offer extended warranties on key features like roofs and HVAC systems, something no older home can promise. These warranties often cover issues like plumbing leaks or electrical malfunctions for up to 10 years, offering unmatched security for buyers.
Building A New Home In Michigan
Michigan's Housing Market
Following the pandemic, Michigan’s real estate market became a hotbed of competition, with inventory levels plummeting and demand soaring. The sudden shift to remote work inspired many families to rethink their living spaces, leading to a surge in demand for homes with more space, home offices, and outdoor amenities. However, Michigan’s housing inventory was not prepared for this spike. According to data from the Michigan Association of Realtors, inventory levels dropped by over 50% during the height of the pandemic, creating fierce competition among buyers. Bidding wars became the norm rather than the exception. Buyers frequently found themselves offering $20,000 to $50,000 over the asking price, sometimes even waiving inspections to stay competitive. I had clients who lost out on five or six homes before deciding to switch gears and look at new builds. The frustration of repeatedly losing to higher offers drove many to explore the more predictable and less stressful process of building new.
New construction offered a beacon of hope. While some builders had waitlists at the time, the experience was far less chaotic than the resale market. Additionally, builders adapted to the increased demand by ramping up production, and today many developments have available lots. The slowdown in demand for new construction has even shifted the advantage back to buyers, with builders now offering significant incentives.
These include covering closing costs, upgrading appliances, finishing basements, or even offering rate buy-down programs to help ease the financial burden.
In some cases, builders are also throwing in premium upgrades like luxury flooring or high-end countertops to sweeten the deal. This shift has made building a new home an increasingly attractive option for those relocating to Michigan. Instead of competing with 10 other buyers and navigating a chaotic market, they can customize a home that fits their needs while taking advantage of builder incentives and warranties. It’s a solution that more and more people are choosing, especially as the resale market continues to recover from the inventory shortages of recent years.
Open kitchens, walk-in showers, and three-car garages—these are the things people want in 2025. Michigan’s older homes? Tiny kitchens, carpeted bathrooms, and garages that can barely fit your lawn mower. Building new is like saying, ‘I’ll take the 21st-century upgrade, please.’ New developments are popping up in all the best spots—good schools, nice parks, and neighborhoods where you’re not stuck behind a tractor on your way to work.
Understand, though, they come at a premium cost. Don’t cross off the possibility of getting into a community that’s a little further out there but has a school-of-choice option too. Some of these communities also include shared amenities like clubhouses, walking trails, and even fitness centers, creating a resort-like atmosphere for residents. In more rural areas, you might even find developments offering larger lot sizes for those looking for more outdoor space without sacrificing modern amenities.
Building A New Home In Michigan
New Home Stressors
A new home might cost more upfront, but it’ll save you time, money, and stress in the long run. Fewer repairs, lower utility bills, and resale value that’ll make your wallet happy. According to Zillow, maintenance expenses for new homes are approximately 50% lower than for homes over 20 years old. Older homes in Michigan? They’ve got character, sure. But they also have drafts, leaky basements, and heating systems that feel like they belong in a museum. New builds are designed for Michigan’s crazy weather, so you’re cozy in the winter and cool in the summer.
So there you have it—several solid reasons why so many people moving to Michigan decide to build new. It’s about comfort, convenience, and peace of mind.
A Question For You!
For those of you watching, what made you want to go through the stress and waiting period for a new home over an old one? Drop your experiences in the comments.
If you’re ready to make the move, I’d love to help you find the perfect new build… or maybe even that unicorn of a used home. Either way, I’ve got you covered. I also have a link to the Living in Michigan newsletter to give you insight on all things Michigan, so be sure to subscribe so you never miss out! Thanks for reading, until next time.
Cheers,
Andrew
Andrew McManamon is a Michigan REALTOR® with Signature Sotheby’s International Realty and provides real estate services to Buyers, Sellers and Investors throughout SE Michigan including Livingston County, Oakland County, Washtenaw County, Genesee County & beyond. Andrew has become one of the pillars of Michigan real estate. Prior to his real estate career Andrew was responsible for managing a senior living facility in Brighton, Michigan as a dining supervisor and an activities assistant. Andrew’s passion to help people is unlike any other, and he continues to strive to be the best resource he can be. Andrew graduated from Cleary University in Howell, Michigan with a double major in business and marketing, and currently resides in Brighton, Michigan.
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