December 2023 Grand Rapids Rental Market Update and 2024 Market Outlook
Congratulations on making it into the middle of December 2023. It’s been a long year, but here we are. Today, let’s discuss some important trends in the market going into 2024.
Rents are decreasing, and days on the market are increasing.
It’s like Oprah with rent reductions for everyone! We’ll show you a chart indicating that CPI rent figures lag behind actual rent by about 12 months.
Another interesting point is that wages are rising faster than rents, which isn’t highlighted in the news often.
2024 Market Outlook
Market times are increasing, and leads on the market are dropping. This emphasizes the importance of ensuring your leasing process is top-notch. Rent reductions are higher than normal, with 2023 and 2022 marking the highest records for rent reductions.
CPI rent peaked in March, and asking rent growth peaked in March 2022.
As of August 2023, we’re at a 3% year-over-year change. The relationship between apartment rent change and average wage is shifting, presenting an interesting dynamic.
Here are a few tips for renting your property:
- Price it right
- Prequality the prospect to avoid wasting time
- Take appealing photos
- Write concise property descriptions
- Confirm prospects before meeting for a showing
- Allow showings ASAP
- Follow up diligently with prospects
- Adapting to the changing market conditions
Looking ahead to 2024, the market could be challenging.
- Rents are leveling slowly
- Households are back to historic debt
- Interest rates are high
- Student loan repayments have started back up
- Short-term rentals are being converted to long-term rentals
- New build properties are hitting the market
- City of Grand Rapids Lead Ordinance goes in effect in 2024.
While rents seem to be stabilizing, other factors like high-interest rates, historic debt levels, and increased supply contribute to the complexity. Keep an eye on the market, adapt your leasing process, and be aware of upcoming regulations, such as the Grand Rapids lead ordinance starting January 1, 2024.
Looking for a property management company in Grand Rapids?
If you have questions about the rental property registration process or other property management questions, feel free to reach out to Jon at jon@simplepmgroup.com or (616) 329-6318.