Grand Rapids is falling behind on new housing, according to a national survey.
A report from Construction Coverage found 2,874 new homes were built in the Grand Rapids metro area in 2019. For every 10,000 residents, Grand Rapids built 26.9 new housing units in 2019, which is below the national average of 41.9.
Summary of Grand Rapids data
- New housing units per 10,000: 26.9 (41.9 nationally)
- Total new housing units: 2,874 (1,370,347 nationally)
- Share of new multifamily housing units: 45.7% (37.7% nationally)
- Total value of new housing units (millions): $539 ($276,611 nationally)
- Median home value: $211,681 ($240,224 nationally)
- Five-year population growth: 5.2% (3.5% nationally)
The study also found new housing construction in the U.S. overall is slowing down. Even though multifamily dwellings have accounted for the majority of new home construction growth since the recession, the shift away from single-family homes has failed to lower prices.
Data from the Department of Housing and Urban Development shows that the median sale price for new homes in the U.S. reached a record high of $348,200 at the start of 2020.
States in the South and West, which have experienced above-average population growth in recent years, are investing the most in new housing the report claimed. New residential construction per capita in Idaho and Utah particularly exceed the national rate of 41.9 units per 10,000 residents by more than 100%. Comparatively, states in the Northeast are constructing the fewest new homes per capita.
Boise, Idaho, ranked No. 1 among midsized metros at 145.9 new units per capita.
To find which metropolitan areas are investing the most in new housing, Construction Coverage analyzed building permit data from the U.S. Census Bureau and home price data from Zillow.
For each metro, the researchers calculated the number of new housing units per 10,000 residents. They also looked at the share of new multifamily housing units, the total value of new home construction, the median home value and the five-year population growth.