Grand Rapids home prices rose by nearly 7% in 2020, and a recent study predicted a similar outcome for this year.
An analysis from Construction Coverage found the median home price in the Grand Rapids metropolitan area increased by 6.8% to $234,133 between 2019 and 2020. Over the next 12 months, the median home price is expected to increase by another 6.5%.
Compared to the rest of the country, Grand Rapids ranked No. 32 out of 95 metros in terms of home-buying activity. At the top of the list was Boise, Idaho, with a projected 7.8% increase in home prices by next year. Home prices in the region rose by 11.5% to $337,099 in 2020.
Albany, New York, was anticipated to see the least increase in home prices with 5.6% in 2021. Homes in the region rose in price by just 3% to $207,759 in 2020.
Younger adults, including millennials, drove much of the increase in nationwide home sales during 2020 with millennials making up the largest share of homebuyers at 38%. Higher earners — often less affected by detrimental COVID-19 economic and financial repercussions —also accounted for higher home sales in 2020.
According to statistics from the National Association of Realtors, the median household income of first-time buyers in 2020 was $80,000, and the median household income of repeat buyers was $106,700. By comparison, the median household income in 2019 was $68,703. These higher earners also typically work in industries that allow for remote work which, along with historically low mortgage rates, incentivized larger home purchases outside of urban centers.
Summary of Grand Rapids metro data
- Composite score: 62.75
- Median home price 2020: $234,133 ($254,4040 nationally)
- Previous one-year change in home price: 6.8% (4.7% nationally)
- Median price cut: 2.6% (2.4% nationally)
- Median days on the market: 15 (21 nationally)
- Projected one-year change in home price: 6.5% (7.9% nationally)
To find the hottest real estate markets of 2020, researchers at Construction Coverage analyzed data from Zillow on the largest 95 real estate markets in the U.S. They created a composite score of each city based on the following metrics: previous one-year change in home price, median price cut from the original listing price, median days on the market and the projected one-year change in home price.