A new report is out showing average vacancy rates in the Muskegon, Holland and Grand Rapids area of 3%. That means, only three units out of every 100 are vacant. The report included over 14,000 units in the three county area. What does this mean to real estate investors and landlords? Well, first, it proves that what most Rental Property Owners Association members have been reporting anecdotally is spot on. Most RPOA members report that they have no vacancies or at least have a waiting list of prospective tenants for their units.
The rental market is alive and well! This likely means that demand will further push rent rates in the upward direction but at a measured pace. Higher rates me less affordable housing. This will result in an increased problem for those agencies looking to find housing for the low income or “risking” tenant.
Several new apartment building projects are in the works for Grand Rapids. This will absorb some of the demand but there are always families looking for something other than an apartment, e.g. single-family home rentals. Investing in rental property seems to be a good thing—even more than usual. The RPOA also receives calls from executives moving into town looking for single-family homes to rent on a six-month basis while they look for locations to buy or build. Most of these requests have stipulated their preference for locations in the Forest Hills School District.
With the slow but continued improvement in the economy and job market, the RPOA expects things to get even better for the industry. For a more detailed analysis of what’s in store for the 2nd quarter of the year.