Michigan's Phase II Housing Project Stalls in Limbo

Plans for the University of Michigan's second Central Campus housing phase remain unsettled heading into 2027, after 49 properties were cleared.

Updated on Nov. 9, 2026 in College Life

Vector-style editorial illustration of a bare cleared lot with a lone brick chimney and leafless trees, evoking an unfinished housing project. — The University of Michigan has left dozens of cleared Ann Arbor properties vacant since summer 2025 while its 2,200-bed Central Campus Phase II housing plan remains unsettled heading into 2027. AI Illustration. Upload story photo >

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The University of Michigan's Phase II of the Central Campus Housing Project, which promises 2,200 beds, remains in limbo heading into 2027. The university bought dozens of private homes starting in 2023 and demolished them in summer 2025, and the land has sat vacant since.

Why it matters

Demand for housing is rising as the University of Michigan repeatedly breaks its own enrollment records, and Phase II was intended to add capacity beyond Wolverine Village. Because public university property is not taxable by cities, the change in ownership also affects Ann Arbor's property tax base.

Wolverine Village added 2,300 beds as Phase I at a cost of about $631 million, while Phase II promises 2,200 beds with no timeline yet. The 49 cleared properties generated about $498,572 in city property taxes from 2021 until the university bought them.

The players

University of Michigan

The public research university in Ann Arbor, known for repeatedly setting student enrollment records, is developing the Central Campus Housing Project.

Joe Giant

Ann Arbor's economic development director, who believes Phase II will ultimately benefit the city once built.

The details

The university began buying dozens of private homes in 2023 between Fifth Avenue, Hoover, John and Division Streets and demolished them in summer 2025. The land has remained vacant, while Phase I Wolverine Village sits on the former Elbel Field.

2021: Ann Arbor began receiving property tax revenue from the 49 properties.
2023: The University of Michigan began buying dozens of private homes for Phase II.
Summer 2025: The university demolished the purchased homes.
September 2026: Median Ann Arbor house value reached $459,781 and median rent $1,894, according to Redfin.
2027: Phase II plans remain in limbo.

Season Trajectory

Phase II follows Wolverine Village, the 2,300-bed first phase that opened on the former Elbel Field at a cost of about $631 million. The stalled second phase now leaves cleared land on Central Campus while student housing demand keeps growing.

Students seeking campus housing should expect continued competition for beds, since Phase II has no timeline and Wolverine Village is the only new capacity so far. Ann Arbor residents may see changes to the city's property tax base as the university owns more land.

The takeaway

Ann Arbor's housing supply depends on decisions still pending for the university's second phase. Students and residents should watch for an announced timeline before planning around new beds.