Blog Post

Grand Rapids Real Estate Market Update

Michael Weitzman • Sep 09, 2016

If you have been debating whether or not you should sell a Grand Rapids property you own but rarely use, now is a great time to act. The current real estate market is considered a sellers’ market and Grand Rapids has one of the strongest markets in the nation. Millennials from all over the country are making the move to Grand Rapids, and most would prefer to buy instead of rent.

An economist recently conducted a study exploring the current housing market and which U.S. cities were experiencing the most change. The study looked at issues such as the affordability of house, how many millennials currently live in the area, the current and predicted future economy, and other amenities that help drive the housing market. While Grand Rapids didn’t reach the top in any one category, it was the city that scored the highest across the board, which was enough to earn it a spot as one of the United States top 100 housing markets. Grand Rapids finished in the 87th position.

The two main things the Grand Rapids area housing market has going for it is its local economy and the affordability of real estate. At the moment, Grand Rapids has a steady, 3.5% job growth rate and many economists predict that the economy and job growth rate will grow even stronger in the future, with many of the jobs being the type of white collar (often in the medical and educational fields) that appeals to millennials who have recently graduated from college.

In many parts of the country, a middle class family has to spend about 40% of their income on housing, which can make finances tight and often forces them to take out a second job in order to make ends meet. San Francisco has the most expensive housing, with the average person dedicating 77% of their income to housing. In Grand Rapids ranked as the 14th city with the most affordable housing. Most middle class families report that they only have to set aside 22% of their income in order to cover their housing. This means that young professionals who currently rent, will be able to set aside a large portion of their income which they can later use as a down payment on a nice piece of property in the Grand Rapids area.

Additional factors that encourage millennials to purchase real estate in the Grand Rapids areas, such as Walker, Kentwood, and Ada includes:

  • Excellent schooling
  • The areas low crime rate
  • Proximity to various activities
  • Cultural diversity

According to data collected for the Trulia’s real estate guide’s Grand Rapids Real Estate market overview , the average amount that landlords in the Grand Rapids area charge for rent is $1,295 while the median cost of real estate selling in the same areas is approximately $142,000.

If you’re interested in either buying or selling a home in the Grand Rapids area, contact us using the form on this page or give us a call today for a complimentary in-person market analysis or showing.

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