Five Ways Market-Rate Housing Boosts Growth, Diversity, and Revitalization
A balanced housing market requires a mix of affordable, middle-income, and high-end options to meet the diverse needs of residents. For Grand Rapids, market-rate and middle-income housing are a major focus of the development sites along the Grand River. These apartments and condos are designed to be made available at prevailing market prices which, in turn, aims to catalyze housing diversity, urban growth, and economic revitalization. By creating spaces for different segments of the population, these housing options seek to not only enhance the vibrancy of downtown Grand Rapids but also attract investments that stimulate local businesses and improve public infrastructure.
Here are five ways that market-rate housing can create change along the riverfront:
1. Supply and Demand Balancing
As Grand Rapids continues to grow, demand for all types of housing increases. Market-rate developments help meet this demand, particularly in high-growth areas. Without these projects, the limited supply of affordable housing would be overwhelmed by demand, driving up prices across the board. By offering more units at various price points, market-rate housing can alleviate pressure on the entire market, helping to stabilize or slow rent increases.
2. Diversification of Housing Options
Market-rate housing options expand on what is already available in Grand Rapids to fill a current void, increasing access to housing units for different income groups. Without sufficient market-rate housing, higher-income individuals may end up competing for units, driving prices up and reducing availability for low- and middle-income households. Instead, these housing projects create a more balanced market, bolstering an already limited inventory in West Michigan and fostering a more diverse community.
3. Encouragement of Urban Development and Revitalization
Market-rate housing has often been a driver for urban revitalization, especially in areas like downtown Grand Rapids, where redevelopment projects are transforming previously underutilized spaces into mixed-use urban neighborhoods. By attracting residents, these apartment and condo units hope to inspire increased investment in infrastructure, retail, and other services in the area. This not only improves the quality of life for residents but also boosts the city's overall economic growth.
4. Economic Growth and Job Creation
Between the Acrisure Amphitheater, Grand Rapids Public Museum updates, new soccer stadium, housing projects, mixed-use space, and infrastructure changes, Grand Rapids riverfront improvements are creating significant construction work and generating jobs for the next several years. Once completed, the housing units will continue to contribute to the local economy by attracting residents who spend time and money at downtown retail, dining, and entertainment, bolstered by the walkability of the area.
5. Local Tax Revenue Increase
Market-rate apartment buildings typically result in more property-tax revenues. This increase in tax revenue can be reinvested in local infrastructure, public services, schools, and parks to ultimately improve the overall quality of life in the city. The additional revenue could also help fund a range of affordable housing programs, creating an economic funnel to even more options for a diverse and sustainable housing ecosystem.
The market-rate apartments and condominiums being added along the Grand Rapids riverfront in the years ahead aim to contribute to a balanced housing market, stimulate economic growth, and generate tax revenue that benefits the broader community. By increasing housing supply and attracting a diverse demographic, these units seek to play an essential role in the health and sustainability of the city and its people.
Learn more about the developments in downtown Grand Rapids by signing up to get up-to-date news right to your inbox.
