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Figures | Grand Rapids Multifamily | Q4 2022

February 16, 2023 5 Minute Read

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Market Summary

‒Occupancy decreased by 20 basis points (bps), quarter over quarter, moving to 96.3%.

‒Rent growth continued to slow, reaching a low of 4.7% not seen since Q4 2020. Rent growth rates have trended between 7% and 10% over the last two years.

‒Average asking lease rates decreased $0.01 per square foot (sq. ft.), quarter over quarter, bringing the average asking lease rate to $1.39 per sq. ft.

‒Units under construction rose 50.9% to 2,572 units across 13 buildings in Q4 2022.

During Q4 2022, the Grand Rapids multifamily market experienced a decrease in occupancy, average asking lease rate, and annual rent growth. Total inventory increased 102 units from last quarter and 993 units since the beginning of 2022. The average asking rental rate decreased to $1.39 per sq. ft., marking a 15.8% increase over the past two years. The average asking rent per unit dropped $16 to $1,233 across all unit types. Occupancy decreased 20 basis points (bps) to 96.3%, quarter over quarter. Development in the Grand Rapids multifamily market is trending positive, with nine projects delivering in 2022 and 13 projects currently under construction. The new construction will bring 2,572 units to the multifamily market.