Looking for an affordable, cash-flowing market earmarked for major development and a projected population and economic surge? Grand Rapids, Michigan, could fit the bill.
Among the new projects planned in a billion-dollar development, the Transformational Brownfield Plan in the Grand Rapids Riverfront area, is the construction of a new soccer stadium, amphitheater, apartment building, and supportive infrastructure, Michigan Public, an NPR station, reported when the project was announced in 2024.
In late 2025, another development was announced: the seven-acre Fulton & Market riverfront plan, led by Magellan Development and local partners, costing $795 million, backed by the Michigan Strategic Fund, and including multiple new housing projects.
“This corridor has long been a vital part of the community, home to so many people and businesses that make Grand Rapids special,” Winnie Brinks (D-Grand Rapids) said in a statement. “It’s great to see them finally getting the attention and investment they deserve.”?
The Michigan Economic Development Corporation reports that the development will add roughly 630-735 new housing units, including three new towers, with tax-capture incentives. Magellan president J.R. Berger called the Transformational Brownfield Plan “a cornerstone of the Fulton and Market development” that unlocks the ability “to transform riverfront parking into a vibrant ecosystem of residential, restaurant, office, retail, hospitality, and public space that connects neighborhoods and further energizes downtown Grand Rapids riverfront.”
The Appeal to Investors
Those unbeatable Midwest price tags, coupled with economic development, have made the chilly Great Lakes area and beyond a hotbed for investors in recent years. Below the hulking skyline cranes and beyond the hype of the Midwest, Grand Rapids is anchored by some sturdy business fundamentals.
According to regional economic development group The Right Place, Greater Grand Rapids’ cost of living is about 8% below the national average, even as the area experienced 6.1% population growth over the last 10 years and a 9% increase year over year in residential building permits in 2024, which occurred in conjunction with burgeoning healthcare and tech industries.
The Stats
In a positive sign for investing, the Grand Rapids area is predicted to enjoy a moderate but steady price appreciation rather than an explosive boom and all the frenzy that comes with it. A housing trends analysis from Redfin noted that as of January 2026, the median sale price in the city was about $282,000. That marked a roughly 4.4% increase from last year, with the price per square foot up 5%, and homes sold in a brisk 33 days, signaling a price-sensitive buying public, but overall demand remains solid.
Realtor.com named Grand Rapids as one of its “refuge markets,” where buyers are migrating from larger, more expensive metros in search of affordability, value, and stability.
“Our 2026 top housing markets offer better value than nearby high-cost hubs, yet steady demand and persistent inventory shortages keep prices moving upward,” Danielle Hale, chief economist at Realtor.com, said in a press release. “For buyers, that can mean more competition and faster price gains. For sellers and homeowners, it signals strong demand or home price appreciation and equity gains.”
A Deeper Dive
Home prices in Grand Rapids rose a healthy 9% in 2024, preceded by 7% in 2023 and a 32% increase overall since 2021, according to Grand Valley State University’s Seidman Business Review, drawing on data from Greater Regional Alliance of Realtors (2025) and Federal Reserve Bank of St. Louis (2025). The price increases in the area have been driven by rising employment and constrained supply, which seems set to change, as 40% of residential permits in 2024 were for multifamily construction.
The Investor’s Play
The economic push toward development, as well as toward more established healthcare and tech industries, creates a housing need. For smaller investors, development projects always create opportunities around the glossy new riverfront condos in the modest infill projects in surrounding corridors.
According to real estate company Cornerstone Home Group, the best values for investors to buy in Grand Rapids come with B-class and C-class properties, which include the biggest Grand Rapids neighborhood Creston (North Grand Rapids), as well as the West Side, Southwest/Burton Heights, and Walker, all of which should be able to be purchased between $150,000 and $300,000, per Zillow data.
Rents and their outlooks for investors are as follows, according to Cornerstone:
- Studio, about $1,280 to $1,330 per month: Stable to modest gains
- One-bedroom, about $1,420 to $1,540: Moderate gains
- Two-bedroom, about $1,640 to $1,800: Moderate gains helped by new builds
- Three-bedroom, about $1,850 to above $2,110: Stronger gains, especially for single-family rentals
Sizable Rent Growth
Small landlords make up the main investor base in Grand Rapids (institutional investors own less than 1%), says Business Insider. Rents are up year over year from 4.1% to 4.5% as of mid-2025, according to the Cornerstone Group. This follows a statewide trend in which housing demand has increased while supply has not, leading to rent increases, according to the Mackinac Center for Public Policy.
Not helping matters have been the number of foreclosures in the state, with Michigan one of the top five states in the country for foreclosure activity as of the first half of 2025, according to ATTOM.
Final Thoughts
Grand Rapids has come a long way. It still has a way to go, however. Behind the splashy headlines of imminent development, U.S. Census statistics reveal that 16.9% of households were living in poverty, which is higher than the state average. With new construction and businesses coming to the city in the next few years, there is an ideal opportunity for astute investors to purchase low-priced rentals in pivotal areas, get them up and running, and enjoy the ride as the city takes flight.
