Top Locations2019 Grand Rapids Housing Market: 3 Reasons to Invest Here by Heba Baker December 17, 2018February 10, 2019 by Heba Baker December 17, 2018February 10, 2019With signs of balance returning to the market, the US housing market 2019 looks like it’s going to finally return to normalcy. These real estate trends have garnered the attention of many towards different inland markets. One of the hottest cities in the Michigan real estate market, the Grand Rapids housing market, has been receiving a great deal of investor interest.But why all the buzz surrounding the Grand Rapids real estate market? Well, here are a couple of reasons that might help to explain that.3 Reasons to Invest in the Grand Rapids Housing Market 2019What promotes investor demand in certain markets? Usually, it’s the same number of factors that investors are always after. A seller’s market cooling down to a buyer’s market, a burst in a market’s economy, high tourism, and affordability are just a couple. So, focusing back on Michigan’s second-largest city, here are three reasons you should invest in Grand Rapids real estate 2019.1. Job GrowthAccording to the Bureau of Labor Statistics, the unemployment rate in Grand Rapids has been trending downward since hitting a peak of 17.1 percent in July 2010. Throughout 2018, it’s hovered at around 4 percent. The presence of the Spectrum Health headquarters in the area contributes to local job growth. In addition, the city is a historic center for manufacturing and boasts thriving furniture, automotive, and aviation manufacturing businesses. This indicates a healthier economy and stability, which is what investors look for.2. AffordabilityDespite local housing affordability concerns, the Grand Rapids housing market is still considered quite affordable on the national scale with a median home value of just over $156,000. Although Grand Rapids home appreciation rates have been some of the highest of any market in the country (41% over the last ten years), prices are still affordable offering potential opportunities for investors who implement more long-term strategies.3. Hottest Market in AmericaAccording to Trulia, Grand Rapids is one of the top 5 housing markets for 2019. This is based on low vacancy rates, high job growth, the younger adult population, and more. Realtor.com also listed the Grand Rapids housing market as home to the “hottest zip code in America.” This is based on how quickly homes in zip code 49508 sold and moved off the market. Grand Rapids home values also show how hot this market is. They have gone up 13.1% over the past year, according to Zillow which predicts they will rise another 3.9% in 2019.A bonus reason you should invest in the Grand Rapids housing market is the data. Real estate analytics are showing signs of strong market performance.Grand Rapids Housing Market Forecast 2019Let’s get down to some actual numbers to back all of this hype for the Grand Rapids housing market. Using data provided by Mashvisor’s investment property calculator, we will give you a quick summary of how the market is actually performing. Here’s the city-level data on the average performance of Grand Rapids investment properties.Grand Rapids, MIMedian Property Price: $277,059Price per Square Foot: $209Average Days on Market: 242Price to Rent Ratio: 21Monthly Airbnb Rental Income: 2,372Airbnb Cash on Cash Return: 4%Airbnb Occupancy Rate: 60%Monthly Traditional Rental Income: $1,075Traditional Cash on Cash Return: 1%The first thing that stands out is the low median property price of real estate in the Grand Rapids housing market. It is below the national average property price and as appreciation rates slow down in the US housing market 2019, this market will remain a relatively affordable place to invest.We can also very clearly see that renter demand is high, according to the price to rent ratio, which implies that it’s more affordable for people to rent rather than buy a home.On the city level, the numbers for Airbnb rentals seem to be better than those for traditional rentals, but this doesn’t necessarily mean Airbnb is the way to go for all Grand Rapids rental properties. To give you some direction on which rental strategy is more successful on a more narrow and definite scale, here’s our neighborhood analysis of the Grand Rapids housing market.Related: Neighborhood Analysis in Real Estate InvestingBest Neighborhoods- Airbnb Investment StrategyHere are the best neighborhoods in Grand Rapids for Airbnb rentals, according to key return on investment metrics.West GrandMedian Property Price: $128,369Price per Square Foot: $99Average Days on Market: 61Monthly Airbnb Rental Income: $2,380Airbnb Cash on Cash Return: 15%Airbnb Occupancy Rate: 62%OakdaleMedian Property Price: $141,450Price per Square Foot: $73Average Days on Market: 48Monthly Airbnb Rental Income: $3,032Airbnb Cash on Cash Return: 13%Airbnb Occupancy Rate: 61%South East EndMedian Property Price: $122,588Price per Square Foot: $89Average Days on Market: 43Monthly Airbnb Rental Income: $2,723Airbnb Cash on Cash Return: 11%Airbnb Occupancy Rate: 61%Madison AreaMedian Property Price: $97,437Price per Square Foot: $80Average Days on Market: 58Monthly Airbnb Rental Income: $2,122Airbnb Cash on Cash Return: 11%Airbnb Occupancy Rate: 58%There are many more neighborhoods in the Grand Rapids housing market in which Airbnb performs well, but these are the top-performing markets. Notice how all neighborhoods have record low real estate prices. Double-digit cash on cash return rates in all the mentioned neighborhoods is also definitely a plus for any Airbnb Grand Rapids real estate investor.Related: The Best Places to Buy a Vacation Home in MichiganThere aren’t any strict Airbnb regulations set, but anyone who wishes to rent out a room or property on Airbnb in Grand Rapids must receive a license from the city. Additionally, be sure to check local zoning ordinances. As Airbnb continues to increase in popularity, it’s recommended to keep track of any new laws and regulations being set in your city.To start your search for Airbnb investments in the Grand Rapids housing market, click here.Best Neighborhoods- Traditional Investment StrategyHere are the top-performing neighborhoods in the Grand Rapids housing market for traditional rentals.Fuller AvenueMedian Property Price: $146,600Price per Square Foot: $98Average Days on Market: 92Monthly Traditional Rental Income: $1,440Traditional Cash on Cash Return: 5%East HillsMedian Property Price: $224,800Price per Square Foot: $102Price to Rent Ratio: 12Monthly Traditional Rental Income: $1,553Traditional Cash on Cash Return: 4%South East EndMedian Property Price: $122,588Price per Square Foot: $89Average Days on Market: 43Monthly Traditional Rental Income: $1,063Traditional Cash on Cash Return: 3%To start your search for traditional investments in the Grand Rapids housing market, click here. Start Your Investment Property Search! START FREE TRIAL AirbnbGrand Rapids MIMichiganTraditional 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post 7 Things That Make College Towns Attractive for Renters Next Post Starting Your Real Estate Investing Career: When to Quit Your Job Related Posts The Best Cities to Invest in West Coast Real Estate in the US Why You Should Be Thinking About Nashville Real Estate in 2017 The Top Markets for Luxury Investment Properties in the US in 2018 Buying Memphis Investment Properties for Sale in 2019: Yes or No? Columbus Real Estate 2018: A Hidden Investment Opportunity? 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