I was always under the impression that the university gives preference towards in-state applicants. However, when I called the undergraduate admissions office, they told me this premise was false.
Also, how would they know whether or not you’re in-state or out of state if what you submit to the residency classification office is separate from the Common App?
The university gives ‘preference’ to the top 4.5% of Michigan HS graduates, which is who they target. They also know that the yield is going to be a lot higher for in-state, which is also a factor in admission. For most top in-state students, Michigan is their #1 choice given its combination of excellent experience, academics, and cost. Full pay in-state families save 60%+ compared to most privates, and lower middle class in-state families mostly get free tuition. Many in-state students are legacies as well.
The admissions office just has to look at the student’s address and high school to quickly see if they are in-state. Residency classifications are a different story because of different rules, but it is fairly simple for most families.
For the Class of 2022, the in-state acceptance rate was 41%. The OOS acceptance rate was 19%. The overall (blended) acceptance rate was 23%.