New construction tops $5 million in city


The housing market in Tecumseh is booming right now thanks, in part, to an incentive program offered by the City of Tecumseh in 2013. Overall, there have been $5 million in investments in Tecumseh in 2016 with 215 residential permits pulled. Coupled with low interest rates on loans, a shortage of inventory, and the proximity to Washtenaw County, the city’s building services department and area realtors are very busy.

In an effort to offer incentives for new residential construction, Tecumseh City Council members on April 1, 2013 approved a plan that waived sewer and water tap fees. That expired on June 30, 2016, however builders can still save 50 percent on normal tap fees until June 30, 2017. After that, tap fees will revert to the regular cost of $2,500 for a one-inch water line and $2,500 for a six-inch sewer line.

The impetus behind the residential tap fee program came from a similar program the city offers to industrial developers. In all cases, the developer is responsible to pay the city for the actual material cost the city will incur for installation of the tap, if applicable. Boring costs, if any, would be the responsibility of the developer. City labor charges, during normal working hours, would not be charged to the developer.

Brad Raymond, director of the city’s building services department, said the city recently waived the tap fees on 32 new condominium and homes before the deadline. Developers at Buttermilk Park, Bonner Farms and the Shadow Brooke subdivision have taken advantage of the incentive with spec homes under construction. Raymond said new owners at Shadow Brooke have gone from existing tri-plex condominium plans to single family homes. Seven new homes are planned for that development.

“At the tail-end of June we had an influx,” Raymond said of the water and sewer line permits. “It basically stimulated construction. This is a hot market right now.”

Robert Fox, board member of the city’s economic development corporation and regional sales manager of Lenawee County for Howard Hanna, agrees.

 “It’s amazing right now,” Fox said. “We are getting offers in one day. Not only that, we are getting multiple offers and they’re over asking price.”

Fox credits the favorable real estate market is due in part to banks offering mortgage loans at low interest rates and because the market is similar in Washtenaw County, therefore Lenawee County is benefitting. “Tecumseh is such a desirable place,” Fox said. We’re booming.”


Tecumseh Herald


110 E. Logan St.
P.O. Box 218
Tecumseh, MI 49286

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