As 2025 wraps up, the Grand Rapids housing market shows steady, controlled growth. The wild swings of the early 2020s have given way to a new normal, with higher interest rates and tight inventory shaping a market that is still competitive but far more predictable.
This year-end review of the Grand Rapids real estate market in the Grand Rapids metropolitan area looks at the main trends, numbers, and local economic factors that influenced buyers, sellers, and investors in 2025, and what they may expect heading into 2026.
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| Category | Metric / Point | 2025 Grand Rapids Detail |
|---|---|---|
| Market Type | Overall market | Stayed a healthy seller’s market (more buyers than homes) |
| Inventory vs balanced level | Active listings (~550–650) were 2–3x lower than a balanced market would need | |
| Home Prices | Median sale price (Q4 2025) | About $293,000–$298,000 |
| Year-over-year appreciation | Around 1.6%–2.1% | |
| Price trend | No price crash; slow, steady appreciation | |
| Sale-to-list price ratio | Around 1.008 (homes sold just over asking) | |
| Share sold over list | Roughly 34%–46% of homes sold above list price | |
| Affordability split | Homes under $400,000 very competitive; higher-end homes sat longer | |
| Inventory | Active listings | Around 550–650 homes at a time |
| New listings (fall months) | Around 286 new listings in months like September/October | |
| Key issue | “Golden handcuffs/lock-in” effect; owners sitting on 2%–3% rates did not want to move into 6%–7% | |
| Speed of Sales | Days to pending | Typically 9–14 days |
| Total days on market | About 25–33 days from listing to closing | |
| Market tempo | Slower than 2021, but still fast and very active | |
| Mortgage Rates & Financing | 30-yr fixed rate low point | Around 6.6% in August 2025 (lowest in ~10 months) |
| Typical rate range | Mostly in the mid-6% range | |
| Buyer strategies | 5/1 and 7/1 ARMs, smaller homes/condos, larger down payments, seller-paid rate buydowns instead of price cuts | |
| Seller strategies | Concessions for rate buydowns rather than big price drops | |
| Neighborhood Highlights | Premium areas | East Grand Rapids, Forest Hills (school district); very tight inventory, strong demand, multiple offers |
| Value / popular areas | Creston: median list ~$299,000, strong for young professionals | |
| Downtown Proximity | West Grand & Westside Connection: ~$270,000–$345,000, walkable, near downtown | |
| Starter-home hubs | Garfield Park and Alger Heights: many homes in mid-$200,000s, active with first-time buyers and small investors | |
| Nearby communities with demand | Wyoming, Kentwood, Plainfield Township, Grand Rapids Township; buyers traded longer commute for more space or newer homes | |
| Local Economy & Demographics | Job growth (5-year period) | About 3.1% employment growth |
| Unemployment | Around 3.5% | |
| Economic base | Mix of manufacturing, healthcare, tech, higher education; supports housing stability | |
| Millennial affordability | About 35.6% of millennial renters could afford to buy (vs. ~29% national) | |
| Migration | Migration-to-population ratio about +0.2% (steady net in-migration) | |
| Rental Market | Average rent (late 2025) | About $1,585/month |
| Rent growth | Around 3.3% year-over-year | |
| Impact | Higher rents pushed more people to consider buying; rentals remained strong for investors | |
| FAQs – Key Answers | Buyer vs seller market? | Seller’s market throughout 2025 |
| Did prices fall? | No; they rose modestly (1.6%–2.1%) | |
| How tight was inventory? | Very tight; 550–650 active listings, new listings only replaced what sold | |
| Effect of rates | Rates around 6–7% shaped budgets, led to ARMs, bigger down payments, buydowns, and smaller homes | |
| Standout areas | Premium: East Grand Rapids, Forest Hills; Value: Creston, West Grand, Westside Connection, Garfield Park, Alger Heights, plus nearby suburbs | |
| Outlook for 2026 | Expected appreciation | About 3.2% price growth forecast through 2026 in West Michigan |
| Inventory outlook | Likely to stay limited unless rates fall below ~5.5% | |
| Market character | Healthy and tight, stable, not a boomtown | |
| Strategy for buyers | Focus on finding the right home now, plan to refinance later; waiting for a major price drop is unlikely to pay off in this market |
All through 2025, Grand Rapids remained a competitive market. The red-hot urgency of the pandemic years cooled, but homes that were clean, updated, and well-priced still drew strong interest.
The biggest story of the year was the “lock-in” effect. Many current homeowners hold mortgage rates in the 2% to 3% range, so they’re hesitant to sell and move into a 6% to 7% rate. That reluctance kept inventory very low and kept downward pressure off prices.
Even with that, buyer demand stayed solid. A healthy local economy and the City of Grand Rapids’s growing appeal on the national stage played a big role. The National Association of Realtors (NAR) named Grand Rapids a top 10 market to watch for 2025, and the area largely lived up to that call, with stable prices and steady appreciation compared to many other cities.
Many people worried about a correction in home prices after the rapid jumps of 2020 to 2022. That did not happen in Grand Rapids in 2025. Home prices continued to climb, just at a more measured pace.
By the fourth quarter of 2025, the median sale price in Grand Rapids sat in the $293,000 to $298,000 range, around the median price for the area. Year-over-year appreciation landed between about 1.6% and 2.1%. The sale price per square foot also reflected this moderate growth.
This kind of growth points to a healthy market. Homeowners are still building equity, but price gains are no longer racing ahead so fast that they risk a bubble.
The sale-to-list price ratio is a useful sign of market strength. In 2025, this ratio in Grand Rapids often hovered a little above 100%. Data from late 2025 showed a median sale-to-list ratio around 1.008, which means the average home sold for just over its asking price.
That margin is slimmer than during 2021 and 2022, when bidding wars were common at nearly every price point. Still, it shows that buyers are willing to pay close to full price, and sometimes more, for homes that are clean, updated, and priced accurately. Around 34% to 46% of homes sold over list price, with the most competition in entry-level and move-up price ranges.
A clear split in the market showed up in 2025.
High interest rates created an affordability issue that limited what many buyers could borrow. As a result, upper-middle-income buyers pulled back or adjusted their budgets, while more affordable homes stayed in high demand.
The inventory of homes for sale was the tightest part of the Grand Rapids, Michigan real estate story in 2025. Many homeowners felt stuck in place. They did not want to swap a 3% mortgage for one closer to 6% or 7%. This “golden handcuffs” effect kept many would-be sellers from entering the market at all.
For a metro area the size of Grand Rapids, active listings stayed extremely low most of the year. At any given time, there were usually only about 550 to 650 homes on the market.
A balanced market for a region this size would often require two to three times that number. The limited pool of real estate listings kept options tight for buyers and continued to support prices.
New listings never gained real momentum. During fall months like September and October, new listings often landed in the high 200s, around 286 in some reports. That was just enough to replace the homes being sold, not enough to build up any kind of cushion.
Because there were still more buyers than homes available, prices remained firm. Even with higher interest rates slowing some demand, there simply were not enough homes on the market to satisfy every qualified buyer who wanted to move.
Despite affordability concerns, the Grand Rapids market stayed fast-paced in 2025. Homes that were move-in ready and priced fairly left the market quickly, often much faster than the national average.
The median time from “just listed” to “pending sale” for real estate listings often fell in the 9 to 14-day range. That is a strong signal that engaged buyers are watching the market closely and are ready to act quickly as soon as a good match hits the MLS.
When you include the full closing period, the average days on market typically range from about 25 to 33 days.
That is slightly slower than 2021, when some homes sold in a single day or even in a few hours, but it still reflects a very active market. An average of about one month from listing to closing suggests that residential property in Grand Rapids remains a highly liquid asset.
You can’t talk about 2025 housing activity without talking about mortgage rates. The cost of borrowing shaped how many people could move and what they could afford.
Rates started in 2025 on the high side, then saw periods of relief. By August 2025, 30-year fixed mortgage rates dipped to around 6.6%, the lowest point in nearly 10 months.
That small drop had a big effect. Activity picked up during late summer as more buyers jumped back in, delayed moves finally happened, and some people who had been watching from the sidelines felt comfortable writing offers again. The response showed just how sensitive buyers are to even modest rate changes.
With mortgage rates holding in the mid-6% range for much of the year, both buyers and sellers changed their approach.
To manage affordability, some buyers targeted smaller options like condos. Common strategies included:
The Grand Rapids real estate market, particularly its zip code housing markets, did not move in perfect sync in 2025. Some neighborhoods and suburbs stayed red-hot, some delivered strong value, and others attracted buyers who were willing to trade a longer drive for more space.
High-demand suburbs such as East Grand Rapids and communities within the Forest Hills school district formed a highly competitive market. Inventory in these areas was extremely tight.
When homes did come up for sale, they often drew immediate interest and multiple offers. Strong schools, mature neighborhoods, and a limited number of available homes kept prices firm and often pushed them above what broader affordability trends might suggest.
Several neighborhoods stood out for value and speed of sale.

As prices and competition in the city center stayed strong, more buyers looked just outside Grand Rapids for more space or lower prices.
Areas such as Wyoming, Kentwood, Plainfield Township, and Grand Rapids Township saw consistent demand in 2025. Many buyers accepted a slightly longer commute in exchange for larger yards, newer homes, or price points that fit more comfortably within their monthly budget.
Housing always reflects the local economy, and in 2025, Grand Rapids had a solid foundation supporting the real estate market.
Over the past five years, the region’s employment base grew by about 3.1%. The local economy has become more diverse, with strength not only in manufacturing but also in healthcare, technology, and higher education. This diversification contributes to the economic stability of Kent County.
This mix has helped protect the housing market from downturns in any single industry. With unemployment around 3.5%, many residents felt confident enough about their jobs to buy homes even with higher borrowing costs.
Grand Rapids continued to draw millennial buyers in 2025. Reports showed that about 35.6% of millennial renters in the area could afford to buy a home. That is well above the national average of roughly 29%.
This group has been a key driver of the entry-level and mid-range markets. Their presence helps keep demand strong for starter homes, condos, and modest single-family properties.
Net migration into the area stayed positive, with a migration-to-population ratio of about +0.2%.
While this is not a huge wave of new residents, it is a steady stream. That ongoing inflow supports demand for housing units each year and puts a natural floor under how much prices are likely to soften, even when interest rates are high.
The rental market in Grand Rapids played a major part in the larger housing story in 2025. It served both as a temporary stop for would-be buyers and as a strong option for investors.
By late 2025, average rent in Grand Rapids reached about $1,585 per month, with roughly 3.3% year-over-year growth.
For renters, that meant higher monthly costs and more competition for quality rental units. The tight rental market indicates a need for increased construction activity. For landlords and investors, it meant that rental properties remained appealing long-term multi-family housing investments.
As rents climbed, the comparison between buying and renting changed for many residents. Even with mortgage rates in the mid-6% range, a fixed monthly mortgage payment often looked better than facing regular rent increases.
For some buyers, owning meant a higher payment upfront. For many, though, the long-term benefit of building equity and locking in a payment felt worth it, especially in a market where both home prices and rents have a history of steady growth.
Grand Rapids stayed a seller’s market throughout 2025. Inventory stayed far below what is considered balanced for a metro this size, with only about 550 to 650 active listings at any given time. Many homeowners chose not to sell because they were “locked in” to 2% to 3% mortgage rates and did not want to trade them for new loans in the 6% to 7% range. Even though the frenzy of 2021 and 2022 cooled, there were still more buyers than available homes, especially under $400,000. This kept prices firm, days on market short, and negotiation power in the seller’s favor. For local context and help timing a move, readers can connect with Cornerstone Home Group’s Grand Rapids real estate team via the contact page.
Home prices in Grand Rapids did not drop in 2025. Instead, they rose at a slower, more sustainable pace. By the fourth quarter, the median sale price sat around $293,000 to $298,000, with annual appreciation around 1.6% to 2.1%. The sale price per square foot showed similar moderate growth. The sale-to-list price ratio hovered a bit above 100%, with a median of about 1.008 late in the year. Roughly 34% to 46% of homes sold over asking, especially in the entry-level and move-up ranges. This pattern points to a stable market where homeowners continued to build equity, without the risky spikes seen earlier in the decade.
Inventory was the sharpest pressure point in the 2025 Grand Rapids housing market. For a region this size, a balanced market would usually need two to three times the number of active listings seen in 2025. Instead, active listings stayed around 550 to 650 for much of the year. New listings during fall months often landed in the high 200s, roughly enough to replace sold homes but not enough to build any cushion. Many owners felt “golden handcuffs” from their low mortgage rates, so they held off on listing. This shortage kept choices limited for buyers, supported prices, and made clean, well-priced homes sell quickly.
Mortgage rates shaped almost every decision in 2025. Rates started the year high, then dipped to about 6.6% for a 30-year fixed loan in August, which sparked a burst of activity. Many buyers stayed in the game but adjusted their strategy. Some shifted to smaller homes or condos, while others used adjustable-rate mortgages like 5/1 and 7/1 ARMs to lower initial payments. Repeat buyers used home equity to boost their down payment and manage monthly costs. On the seller side, price cuts were often replaced by concessions like temporary or permanent rate buydowns, where sellers helped reduce the buyer’s interest rate instead of dropping the list price.
Several areas around Grand Rapids showed clear patterns in 2025. Premium suburbs such as East Grand Rapids and the Forest Hills school district had very tight inventory and strong demand, thanks to top-rated schools and mature neighborhoods. On the value side, Creston drew many millennial buyers with a median list price of around $299,000 and growing amenities near downtown. West Grand and Westside Connection stayed popular for their mix of walkability and relative affordability, with typical prices from about $270,000 to $345,000. Starter-home areas like Garfield Park and Alger Heights, where many homes sat in the mid-$200,000 range, remained active with first-time buyers and small investors. Nearby communities such as Wyoming, Kentwood, Plainfield Township, and Grand Rapids Township also saw steady demand from buyers willing to trade a slightly longer commute for more space or newer homes.
As 2025 ends, the Grand Rapids housing market can be summed up in two words: healthy and tight. The city has moved away from the frenzied conditions of the pandemic years, but it avoided the price crash some people predicted.
Looking ahead to 2026, most signs point to a continuation of current trends, with the area's stability confirmed by avoiding a rise in foreclosures. Unless mortgage rates fall sharply, likely below 5.5%, inventory will probably stay limited. Buyer activity may ebb and flow with rate changes, but the underlying demand in real estate in Grand Rapids, Michigan remains in place.
Forecasts that call for around 3.2% price appreciation through 2026 suggest that real estate in West Michigan, across various segments including waterfront property, should remain a solid long-term wealth builder. For many buyers, the best strategy is to focus on finding the right home, then plan to refinance the rate when conditions improve. Waiting for a major price drop in a market with low inventory, solid job growth, and steady in-migration is unlikely to pay off.
Grand Rapids enters 2026 not as a speculative boomtown, but as one of the most stable and dependable housing markets in the Midwest. For anyone planning to buy, sell, or invest, staying informed and working with a trusted local real estate team will be the key to making smart moves in the year ahead.
ABOUT THE AUTHOR
Marius Carlos, Jr. is an SEO strategist and digital marketing professional. He is a freelance copywriter, and his interests in digital marketing include large language models, content, SEO, and social media marketing.
Along with Marius, the CHG content team finalizes the blogs. They blend hands-on experience with current standards for SEO, UX, and readability to deliver practical guidance you can trust. Every piece is researched, edited, and written to a high standard.
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