2023 Development Report

HOUSING – Key Metrics

In 2022 community partners across Greater Grand Rapids commissioned a housing needs study to identify gaps in the housing market across Kent County. Among the findings, the study identified the need for nearly 35,000 additional new housing units in Kent County between 2022 and 2027. This forecast breaks down the gap in housing into roughly 13,000 additional rental units and 22,000 additional homes across Kent County from 2022 to 2027. View the full housing needs assessment at rightplace.org/housingnext . An analysis of residential building permits shows the pace of new construction increasing post-pandemic, particularly among single-family, 2-unit housing, and 3-4-unit housing. In 2021 and 2022 multi-family developments with more than 5 units did not meet pre-pandemic numbers. However, 2023 numbers show more than half as many building permits were pulled for 5+ unit developments in the first three months of the year than the whole of 2022.

Grand Rapids 61% (8,000 units)

(5,000 units) 39% Rest of Kent County

Grand Rapids 28% (6,000 units)

(15,000 units) 72% Rest of Kent County

Kent County Rental Unit Market Gap

Kent County Housing Unit Market Gap

Residential Building Permits by Unit Type (Kent County)

Housing Gaps 2022-2027 (Kent County)

5,000

10K

Apartments Houses

Sum of 2022† Sum of 2023*† Sum of 2020 Sum of 2019 Sum of 2021

4,000

8K

3,000

6K

2,000

4K

1,000

2K

0

0

<30%

81%-120% 121%+ Percent of AMHI (Area Median Household Income) 31%-50% 51%-80%

2 Unit Multi-Family 3-4 Unit Multi-Family 5+ Unit Multi-Family

Single Family

Unit Type

Source: Bowen Research (Commissioned by the Grand Rapids Chamber of Commerce and Housing Next)

*2023 data represents building permits year-to-date from January to March 2023. †2022 and 2023 represent preliminary numbers and are subject to change.

Source: U.S. Department of Housing and Urban Development

07

STATE OF DEVELOPMENT – DIVING DEEPER

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