MARKET ANALYSIS
GRAND RAPIDS
Market Spotlight: Grand Rapids, Michigan BREAKING DOWN THE DATA BEHIND “TOP 10” LIST PRAISE.
by Carole VanSickle Ellis
G
rand Rapids, Michigan, has recently received an am- bitious title: “A Grand Investment.” The label, derived from an ongoing series of studies and articles commissioned and created by a local “destination marketing organiza- tion,” certainly fits the local real estate market. In the past 18 months, the second-largest city in Michigan has made top-10 lists for being among the “best mid-size markets for homebuyers” (7th, WalletHub), having the “hottest ZIP code in America” (Realtor.com), and boasting the “#1 Market for Job Growth” (Headlight Data). With all of these accolades rushing in, it is no surprise that Grand Rapids has received a great deal of investor interest in the past few years as well. In 2017, ATTOM Data Solutions reported Grand Rapids had experienced one of the biggest increases in home flipping rates in the country, and, perhaps partially in response to this, in 2018 many local real estate professionals and policy-makers have expressed concerns about declining home affordability in the area. The city has responded to this issue with a series of projects to create new affordable housing options that it hopes will help keep popu- lations that otherwise might find themselves priced out of the metro area in place. For example, a project on the northwest side of the city is intended to provide housing for students
who may someday be candidates for a local scholarship pro- gram intended to keep children in school through graduation. Families with children in the program will receive priority when the apartments are ready to be leased. EXPOSING OPPORTUNITIES IN GRAND RAPIDS Any time a city receives a great deal of attention in the media for being a “hot” real estate market, it is easy to lose the basic facts in the “hoopla.” Here, we break down a few of Grand Rap- ids’ latest titles and the facts and rationale behind them:
“#1 Market for Job Growth” Title courtesy of Headlight Data based on economic and workforce development
According to the Bureau of Labor Statistics, Grand Rap- ids’ unemployment rate has been trending downward since hitting a peak of 17.1 percent in July 2010. In 2018, it has hovered around 4 percent. According to Yardi Matrix, the area has a stable employment base with top employment sectors manufacturing, trade, transportation & utilities, and
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