Arbor South is a redevelopment project designed to meet one of Ann Arbor’s most pressing challenges (housing supply and affordability) while creating a vibrant, walkable neighborhood. This transformation will convert a car-oriented corridor into a mixed-use community featuring more than 1,000 new homes, including 200 permanently affordable units, retail, entertainment, and green space.
Located near one of the main entry points to Ann Arbor and in the TC1 zoning district, Arbor South aligns with the City’s A2Zero climate goals and mobility priorities. The development supports walking, biking, and public transit while integrating structured parking for flexibility during the transition to lower car dependency.
Why It Matters
- Delivers housing at scale in a location rich with services and job access, helping stabilize regional housing costs and limit outward sprawl.
- Concentrates growth near existing infrastructure, while advancing climate and transportation demand management goals.
- Creates a dynamic local destination through a balanced mix of residential, retail, and hospitality uses while attracting visitors, supporting small businesses, and generating lasting tax revenue.
Key Features
- Over 1,000 new homes, including 200 permanently affordable units managed by the Ann Arbor Housing Commission, thereby expanding housing across income levels.
- Ground-floor retail, dining, and entertainment spaces that bring energy to the corridor and serve both residents and the broader community.
- A new hotel to welcome regional visitors, boost tourism, and support local businesses.
- Walkable, human-scale design with direct access to AAATA bus service, dedicated bike infrastructure, and public open spaces.
- Structured, shared-use parking to support residents, businesses, offices, and visitors while enabling a long-term transition toward lower car dependency.
Funding Perspective
The Tax Increment Financing (TIF) tool is crucial to making this level of density and affordability possible by funding essential infrastructure, such as structured parking. This upfront investment unlocks long-term benefits: once the TIF period ends, the tax base generated by Arbor South will significantly increase funding for public services citywide, including transit. While transit demand is expected to grow, this project’s design prioritizes reduced car dependency and aligns with sustainable mobility goals.
Big Picture Impact
Arbor South demonstrates how planning and targeted investment can address housing needs, reduce sprawl, and create a more sustainable future for Ann Arbor.
