On a cool evening in early April, the meeting room at the Suttons Bay Fire Department was packed wall-to-wall. Residents, housing advocates, and local leaders gathered for what might sound like a dry zoning discussion, but what was actually a pivotal moment for the future of housing in Suttons Bay Township.
As part of its Community Design work, Groundwork has been working with Peninsula Housing to support their efforts to create homes that local individuals and families can actually afford.
That evening, the township planning commission painstakingly reviewed proposed zoning language for a new Neighborhood Residential District along with a request to rezone eight acres owned by Peninsula Housing on Herman Road from agricultural into the new district.
The reason why this new district being added to the local zoning is a big deal is because it creates more flexibility in the kinds of homes that can be built and allows a wider mix of housing types within a neighborhood. As an example, it opens the door for smaller homes to be built which is a critical step in reducing housing costs, since home prices are closely tied to construction costs per square foot.
For those who have spent years advocating for more housing solutions in Leelanau County, the room seemed to carry a quiet tension, waiting to see if local leaders would take action and recommend the changes. And late into the evening, they did.
The planning commission recommended approval, the proposal moved through county review, and on May 13, the township board gave final approval to both the new district and the rezoning request. This was a major win for local housing advocates, but it is only the beginning.
Turning Policy into Homes
Creating better zoning policies is essential, but policy alone does not build homes. Now, organizations like Peninsula Housing need community support to turn these opportunities into real housing for people looking to live in the area.
Peninsula Housing will present its site plan for the 980 S. Herman Road property to the township planning commission on Tuesday, June 2. The proposal includes 30 homes on the site, made up of 12 duplex units and 6 single-family homes. The duplexes will offer a mix of one and two-bedroom options, while the single-family homes will each have three bedrooms. Community support matters. If you live in the area, attending the meeting is one meaningful way to help move housing forward.
Above: Rendering of Peninsula Housing’s 3-bedroom single-family home for the Herman Road property.
The Need Is Urgent
Despite some recent wins, the housing shortage in Leelanau County remains severe.
According to Housing North’s Dashboard, the county needs 2,335 new homes by 2027, yet nowhere near that number are getting constructed, especially at prices that work for the typical person.
The average home price in the county has climbed to approximately $672,000. Housing North estimates an annual income of roughly $197,000 would be needed to afford a home at that price point, far beyond what many local workers and families earn even with what are considered “good-paying” jobs.
Since at least 2010, Michigan’s Senate Fiscal Agency has shown Leelanau County to be the most unaffordable county in the state for housing and categorized it as “Seriously Unaffordable.” As of 2025, more counties joined those ranks as home prices outpaced incomes post 2020, but Leelanau and Grand Traverse Counties alone moved into a new, worse category labeled “Severely Unaffordable.”
Above: Michigan Housing Affordability Trends 2010-2025: Michigan’s Senate Fiscal Agency. Click image for full graphic details including descriptions and methodology. (Read the report.)
Housing Impacts Everyone
Housing is not just a personal issue; it is a community issue.
When homes become unattainable, it becomes harder for schools to hire teachers, for restaurants and small businesses to stay open, and for emergency services to find firefighters and EMTs. The people who keep the community functioning every day increasingly struggle to live in the very places they serve. That affects everyone.
Housing that local workers, families, and seniors can afford strengthens the long-term vitality of a community. It helps create a balanced housing market where people across income levels can continue to live, work, raise families, and contribute locally.
Thanks to years of advocacy, partnership, and persistence, an important step forward has been taken and we look forward to seeing what may come of it! 
Carolyn Ulstad is Groundwork’s Transportation Program Manager.
carolyn.ustad@groundworkcenter.org
