Grand Rapids Rental Market Report – March 2025

The latest rental market data for Grand Rapids and surrounding areas reveals some interesting trends. Let’s dive into the numbers and key takeaways from this month’s report. Note the data used in this analysis is from Zillow’s rental data.

New Listings on the Market

In January 2024, we saw nearly 600 new rental listings hit the market. Fast forward to 2025, and that number has dropped to around 500. This decline in available units continues into February, where we see fewer listings compared to the previous year.

When looking at advertised rental units over a rolling 90-day period, the 49503 zip code leads with nearly 400 listings, followed by 49504 with 320. After that, the numbers drop significantly. It’s important to note that Zillow’s data does not capture many large multifamily properties, which means the total rental inventory may be higher than reported.

Days on Market

March 2025 data is still incomplete, but early indications suggest that the average days on market are lower than previous months. In 2024, rental listings averaged 30+ days on the market throughout the year, with some fluctuation.

Currently, we’re seeing a downward trend, which is a positive sign for landlords. However, we’d like to see this number decrease further as we move into the spring leasing season.

Rent Reductions

One key indicator of market demand is the percentage of listings that require a rent reduction. In April 2024, about 20% of listings saw at least one rent reduction. This percentage increased during the winter months, which is expected due to seasonal slowdowns.

Now, in early 2025, we’re seeing reductions normalize, aligning with national trends.

Zip Code Breakdown

49504 – Single-Family Homes & Apartments

• Two-bedroom rentals have dipped slightly, likely due to seasonal trends.
• Three-bedroom rentals are seeing an increase in average rents, with some new developments pushing rates higher.
• Four-bedroom rentals remain stable, with only minor fluctuations in price.
• Apartments:
  • One-bedroom and two-bedroom apartment rents remain steady.
  • Three-bedroom apartments saw a brief spike in January but have since adjusted.
  • Four-bedroom apartment rents are significantly higher, likely due to high-end multifamily properties catering to roommate-style living.
• Days on Market is going down for both single family homes and apartments and is currently at about 30 days on market.

49503 – Single-Family Homes & Apartments

• Two-bedroom rental prices are within $100 of each other compared to last year.
• Three-bedroom rentals had a short-term price increase but have since stabilized.
• Four-bedroom rentals are rebounding after a slight dip.
• Apartments:
  • One-bedroom units range from $1,200 to $1,400.
  • Two-bedroom apartments average $1,500 to $1,600, with newer A-class units driving up rental rates.
• Days on Market is going down for both single family homes and apartments and is currently at about 30 days on market.

Grand Rapids Overall Rental Market

• Two-bedroom single-family homes are averaging between $1,500 and $1,800 per month.
• Three-bedroom rents are rising, a good sign for property owners.
• Four-bedroom rents remain steady, which aligns with expected trends.

Days on market for Grand Rapids as a whole hovers around 30 days, similar to individual zip codes.

Wyoming Rental Market Trends

• Two-bedroom rents have decreased slightly, as expected in the winter months.
• Four-bedroom homes had no new listings in December, which was confirmed by raw data.
• Apartments:
  • No new one-bedroom apartment listings were recorded in February.
  • Two-bedroom apartments are holding steady.
  • Three-bedroom apartment rents are increasing, a positive sign for landlords.

Days on market for single-family homes in Wyoming is rising, while apartment days on market are decreasing.

Kentwood Rental Market Trends

• Two-bedroom rental rates are slightly lower this month as expected during the Winter months.
• Three-bedroom rental rates spiked in February, but this was due to a small number of new listings.
• Four-bedroom rentals remain strong.
• Days on market for single-family homes in Kentwood are nearing 40 days, slightly higher than in other areas.

Market Outlook for Spring & Summer

As we approach the warmer months, we anticipate the rental market to pick up. However, we are unlikely to see the rapid rent increases of the pandemic years.

While rental inventory remains slightly lower than last year, new construction—particularly A- and B-class units—is adding supply to the market. Owners of C-class properties (older homes with fewer amenities) may need to price competitively to attract tenants.

Final Thoughts

• The average days on market is around 30 days, with some areas trending downward.
• Rental rates are stable to increasing, but not at the dramatic rates seen in previous years.
• New developments continue to push rents higher, particularly in A-class units.
• Older C-class properties may face more competition, requiring strategic pricing and incentives.

If you have any questions about the Grand Rapids rental market, reach out to John at Simple Property Management. We’re here to help!