Home to an exceptional artistic and cultural scene, exciting nightlife, five-star dining, stunning natural beauty and a vibrant community spirit, the Grand Rapids metropolitan area has long been renowned as a great place to live.
Q2 2015 Grand Rapids Rental Market Update
Grand Rapids is hardly the most glamorous Midwestern metropolitan area, but it deserves plenty of recognition for being the second most attractive market in the Midwestern U.S. for rental real estate investment and 18th most attractive in the U.S. as a whole. It should also be pointed out that Grand Rapids managed to jump four spots in the Rental Ranking Report's regional rankings in Q2 2015 and an impressive 19 spots in the national rankings.
At first glance, Grand Rapids's negative year-over-year change in median rental prices (-0.46 percent, the 71st-worst rent variance of the 75 metropolitan areas included in the Rental Ranking report) might make its high rankings a bit puzzling. However, other relevant real estate statistics show that investing in Grand Rapids rental properties is anything but a bad idea.
Grand Rapids property values appreciated 6.65 percent year-over-year in Q2 2015, a rate 30 percent higher than the national average during that period. The median age of Grand Rapids's housing stock is 51 days, almost two weeks less than the national average of 63. The local annual job growth rate, 1.97 percent, is slightly below the national average but is still quite strong. Its exceptionally low vacancy rate of 2.50 percent is the fourth-lowest in the country. Taken together, these statistics indicate that demand for Grand Rapids housing is strong and, accordingly, rental real estate investments will become more lucrative in the coming quarters.
Q1 2015 Grand Rapids Rental Market Update
Grand Rapids may have lost the top spot it achieved in the last Rental Ranking Report, but there's nothing wrong with its rental property fundamentals. The city posted solid numbers for capitalization rates and property appreciation in the year ending in Q1 2015, leading Grand Rapids to be ranked sixth in the Midwest and 37th in the United States in the Q1 2015 Rental Ranking Report.
The Grand Rapids capitalization rate for rental properties is an impressive 7.5 percent, ranking 31st out of the 75 metros evaluated by the Rental Ranking Report. Other positives include a home value appreciation rate of 6.96 percent and exceptional year-over-year job growth of 3.96 percent. Lastly, the median age of Grand Rapids housing inventory was 61 days, slightly under than national average of 70.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Grand Rapids rental property?
The combination of solid home value appreciation and a moderately high average capitalization rate means that rental properties in Grand Rapids can pay off both in the short and long terms. Furthermore, with national recognition as a great place to raise a family and fairly high year-over-year job growth, you can count on demand for Grand Rapids rental properties to continue to increase.
Thinking about renting out a property in Grand Rapids? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.