Because the University of Michigan is so large, the University can only guarantee residence hall (dormitory) living for incoming freshman students. Generally, sophomores, juniors, seniors, and graduate students live in Off-Campus Housing locations (either apartments or houses). Off-campus does not mean off-campus in the sense that it is not located near campus; most off campus housing is actually within campus. It simply means that the properties are not owned and maintained by the university. Instead, they are privately owned apartments and homes managed by landlords and management companies.
There is family housing for students that are married and/or have children. All family housing is located on north campus. The university does offer a few single graduate student residence hall rooms. There is a limited number of both family housing and single graduate housing units, so both require an application.
Almost, if not all, of the graduate level urban planning classes will be held in the Art and Architecture Building (on north campus), so students might want to consider apartments around the north campus area. However, some students live on central campus and there is a UM bus system that runs between central and north campus every five minutes, so it is possible to get around without much hassle, no matter where you live.