Luxury Homebuilding Booms in Southwest Oakland County: Top Communities and Developments to Watch

Amidst a housing market marked by rising mortgage rates and restrained national sales, southwest Oakland County stands as a beacon of resilience and prosperity. The region, encompassing Commerce Township, Lyon Township, and Milford Township, has experienced a luxury real estate renaissance. With new developments featuring cutting-edge designs, premier amenities, and strategic locations, this area exemplifies the enduring appeal of well-planned communities, even in a challenging market.

While national home sales are forecasted to hit their lowest point since 1995, southwest Oakland County is booming. Its success is attributed to a trifecta of factors: abundant buildable land, highly ranked school systems, and a base of affluent households. These conditions have created a market ripe for the growth of high-end residential developments, drawing in a diverse pool of buyers.

The Rise of New Developments

Commerce Township, Lyon Township, and Milford Township are spearheading Oakland County’s surge in housing developments, with permits for hundreds of new units issued over the past two years. While national markets have struggled, these townships have flourished, issuing 225 permits in Lyon Township, 147 in Milford Township, and 74 in Commerce Township last year alone. This year’s figures, though slightly lower, remain robust, with 184 permits in Lyon, 102 in Milford, and 51 in Commerce.

Median household incomes in these townships far outpace both the county and state averages. In 2023, Lyon Township posted a median household income of $145,000, compared to $112,552 in Commerce Township and $111,007 in Milford Township. For context, Oakland County’s median income was $95,296, while Michigan’s stood at $71,149. These financial benchmarks provide a solid foundation for the region’s flourishing luxury housing market.

Completed Projects: A Showcase of Modern Living

Oak Hills, Commerce Township

Oak Hills, situated at the southeast corner of Wixom and Glengary roads in Commerce Township, represents a model of efficient planning and high demand. Completed in 2023, this development offered 78 single-family homes, each featuring a 2,390-square-foot floor plan. The homes quickly sold out, with the final unit fetching over $500,000 in August. Its success highlights the market’s appetite for spacious, high-quality housing.

Woodlands of Lyon, Lyon Township

Lyon Township’s Woodlands of Lyon by Pulte Homes has brought a new dimension to the area’s real estate landscape. This development caters to growing families with four- and five-bedroom homes starting at $578,990. When completed, the project will boast over 100 homes, providing a seamless blend of suburban tranquility and modern luxury.

Kensington Ridge by Del Webb, Milford Township

In Milford Township, Kensington Ridge by Del Webb serves a niche but rapidly growing market: active adults aged 55 and older. This "active adult community" will ultimately include over 600 homes and features a rich slate of amenities, including a heated indoor pool, tennis and pickleball courts, and a 43-acre lake. Residents enjoy the social benefits of a 16,800-square-foot lakefront clubhouse, which houses a fitness center and space for gatherings.

For residents like Judi Crawford, Kensington Ridge offers more than a home—it provides a community. Having moved to the neighborhood in April, Crawford notes that the development’s social and recreational opportunities have transformed her lifestyle. “We do have a lot of people from Florida here and Arizona mainly to be near their families,” she said. With events like mystery trips, holiday parties, and arts and crafts, the neighborhood fosters a vibrant, close-knit atmosphere.

Demand Driving Prices Up

High demand and low inventory have placed upward pressure on home prices across Oakland County. According to the 2024 October Housing Report from RE/MAX of Southeastern Michigan, the median sale price for homes in the region climbed 9.2% year-over-year to $328,750. Oakland County recorded the highest average price in southeastern Michigan at $386,000, reflecting an 11.9% increase. Despite these rising costs, homes sold rapidly, averaging just 28 days on the market.

These trends underscore the strength of the local real estate market, even as national trends indicate a broader slowdown. Jeanette Schneider, president of RE/MAX of Southeastern Michigan, noted that developments in Commerce Township, Lyon Township, and Milford Township might help meet some of the pent-up demand for housing. “Commerce has the vacant land for people to build on,” she explained. “I think it’s also going to appeal to a lot of today’s buyer consumers.”

Commerce Township: A Hub of New Construction

Commerce Township has emerged as a focal point for high-end real estate development. Several ambitious projects are reshaping the township’s landscape, providing a range of housing options for diverse buyers.

Townes at Merrill Park

Located south of Oakley Park Road, the Townes at Merrill Park by Pulte Homes offers three-bedroom, 2.5-bathroom townhomes starting at $451,990. The development has proven popular with families, thanks to its proximity to Walled Lake schools and nearby recreational trails. These trails connect the community to shopping destinations such as Twelve Oaks Mall and provide access to major highways, including I-96, I-696, and I-275.

Reserves at Proud Lake

The Reserves at Proud Lake, developed by Pine Cove Building Company, caters to luxury buyers seeking larger properties. With prices ranging from $624,900 to $900,000, these single-family detached condos offer expansive lots, including walkout and daylight options. The development exemplifies the move-up buyer market, where affluent families and professionals seek homes that elevate their lifestyles.

Future Projects in Commerce Township

Commerce Township’s development pipeline is equally impressive. Projects like Shepherd’s Grove, Cove at Benstein Crossing, and the Reserve at Crystal Lake promise to deliver additional options for homebuyers. These developments align with the township’s vision of creating neighborhoods that combine modern amenities with natural beauty.

Five & Main: A Mixed-Use Vision

One of the most ambitious projects in Commerce Township is Five & Main, a mixed-use community combining residential, retail, and entertainment spaces. Continental Properties is building the Springs at Five & Main, a 284-unit apartment complex set to open in the summer of 2025. This residential component complements the township’s broader vision of creating a vibrant destination that includes restaurants, shops, and entertainment venues.

Larry Gray, the township’s supervisor, described Five & Main as a milestone in the community’s development. “Springs at Five & Main will be the essential residential component of the larger Five & Main project,” he said. This project represents years of collaboration between the township, the Downtown Development Authority, and developers.

The Broader Implications

While luxury developments dominate the landscape, experts note a persistent shortage of affordable housing in suburban areas like Commerce Township. Urban studies and planning professor Jeff Horner pointed out the disparity between luxury offerings and the demand for more affordable options. “Where we have plenty of houses that are available to buy are in the wonderful cities like Detroit,” he explained, adding that the luxury market remains fueled by wealthy retirees and empty nesters.

Despite these challenges, southwest Oakland County’s success highlights the potential of strategic development to meet diverse housing needs. As homes continue to sell quickly and at increasing prices, the region exemplifies the enduring appeal of well-planned communities with premium amenities.

A Bright Future for Southwest Oakland County

Southwest Oakland County’s real estate market shows no signs of slowing down. With projects like Oak Hills, Woodlands of Lyon, Kensington Ridge, and Five & Main setting the standard for modern living, the region is poised for continued growth. While national markets may struggle, this vibrant corner of Michigan demonstrates that high demand, coupled with thoughtful planning, can create a thriving housing market.

From family-oriented developments to active adult communities, the area offers something for every buyer. And as more projects come online, southwest Oakland County cements its status as a premier destination for luxury living. The region's unique blend of affordability, convenience, and luxury ensures its place as a standout in the ever-evolving landscape of American real estate.