Changes Highlight Potential Impact of Adding Housing from Middle Incomers
Grand Rapids, MI: A new 2025-2030 Housing Needs Assessment prepared for Housing Next shows the overall housing gap narrowed slightly in Kent County and that there is significant potential to improve housing access by adding housing options for middle income households.
Kent County added more than 6,000 new housing units from 2022 through 2024. This contributes to housing needs decreasing slightly in Kent County, which is still anticipated to outpace the state in population and household growth.
Kent County and local jurisdictions have led the state in a number of ways to address the housing shortage. This includes the creation of a revolving loan fund to provide lower interest rates, financial support to help cover the costs of strategic zoning changes, and a county-wide brownfield redevelopment authority as an option to support infrastructure and other reimbursable costs.
Kent County is expected to continue to grow, with the report predicting 6,371 new households by 2030 (30% in the City of Grand Rapids and 70% in the remainder of the county).
“We’ve partnered with Housing Next and the private sector to take real, actionable steps—and we’re already seeing the impact,” said Ben Greene, Chair of the Kent County Board of Commissioners. “As the landscape continues to shift, it’s critical that we stay focused on the data and keep adapting to meet the needs of both families and job creators in our community.”
Key Trends
Overall: Kent County is facing a rental housing gap of 11,775 units and a for-sale housing gap of 22,139 by 2030 for a total of 33,914 units.
- Both Grand Rapids and the remainder of Kent County saw a slight decrease in housing needs for rental units which was influenced by the significant residential development added to the market.
- The estimates indicate there is potential support for a variety of residential development alternatives in both the city of Grand Rapids and the balance of Kent County.
City of Grand Rapids
- Rental: The estimated overall gap of rental units fell 12.1% to 6,990 units since the 2022 study influenced by the notable residential development that has occurred in Grand Rapids. o The greatest need (1,927 units) is for households earning between 51% and 80% of area median income (AMI).
- For-Sale: The estimated overall gap of for-sale units is up 2.9% to 6,333 units.
- The greatest need is for households earning between 80% and 120% AMI.
Kent County (minus Grand Rapids
- Rental: The estimated overall gap of 4,875 units, down from 5,107 in 2022.
- The greatest gap is also for households between 50% and 80% AMI.
- For-Sale: The housing need increased to 15,806 units from 15,486.
- The vast majority of for-sale need is for households earning 51% AMI or greater, and the largest single gap is for 120%+ AMI.
“The City of Kentwood has added roughly 800 homes since the last census and has hundreds more in the building or planning process,” said Mayor Stephen Kepley. “It’s a competitive, yet stable market that reflects the rising appeal for families, and we continue to focus on how the city can support a high quality of life for current and future residents.”
“It takes intentional and consistent work to address our needs. We have made it a priority to be innovative to promote housing for all residents,” said Mayor David LaGrand of Grand Rapids. “We have made progress with large scale, dense mixed-use projects as well as infill housing projects. I am glad to see partners countywide collaborating and finding ways to step into opportunities to support.”
Housing Next
“Fortunately, between two-thirds and three-quarters of the overall housing needs can be solved using existing tools available at the local level,” said Jen Radaz, Sr. Manager for Housing Next. “This includes allowing smaller homes on smaller lots, support for gentle density near major corridors, and utilization of the new housing tax increment finance tool.
While tools like low-income housing tax credits can provide deeply affordable housing options directly, adding market rate housing and options for middle income households provides ‘step-up’ options for their next opportunity. This opens up existing housing that is more affordable than new construction and doesn’t require subsidy,” continued Radaz.
Housing Next’s efforts to support local communities in prioritizing light touch density along and near key corridors, as well as our support to local communities interested in executing modest zoning reforms will be key to meeting our regional housing shortages. Housing Next is focused on catalyzing specific corridor redevelopment opportunities that can support existing businesses and further expand walkable, amenity-rich housing options. This includes:
- Identifying opportunity rich areas that are already served by municipal infrastructure and where land is significantly underutilized.
- Providing simple to use examples to improve local zoning for a variety of housing options to meet our regional needs.
- Supporting local communities with technical assistance to modify policies and work in partnership with regional developers.
“The past three years of new construction have helped stabilize housing needs, yet the region must double down on smart growth strategies—like gentle density and strategic zoning—to unlock more options for all income levels,” said Ryan Kilpatrick, Lead Consultant for Housing Next. “As a result of scarcity, we have seen rent and home prices increase faster than wages. Until we solve for housing scarcity, we will continue to play catchup and the backlog will persist. While we are working on housing supply at all price points, we will need targeted support for low- and moderate-income households to ensure they can remain stably housed,” continued Kilpatrick.
Chamber to Share Additional Details Friday
The Grand Rapids Chamber’ will cover new data, upcoming bipartisan legislation, and how the industry is innovating on Friday, June 20. Limited walk-in seats are available.
- Housing Next will release the new 2025-2030 Kent County Housing Needs Assessment and highlight the top trends.
- A panel of bipartisan state legislators will discuss the work they are doing on new housing legislation.
- Industry experts will discuss the latest challenges and how they are innovating to address them.
“When markets are empowered through smart policy—streamlined permitting and allowing for diverse housing types—supply can rise to meet demand,” said Joshua Lunger, Vice President of Government Affairs at the Grand Rapids Chamber. “A thriving housing market underpins vibrant, economically resilient communities where families and businesses can grow together.”
“There is a strong bipartisan sentiment in Lansing that we can find ways to incrementally support a community’s housing goals,” said State Representative Stephen Wooden (D-Grand Rapids). “This is something I have a personal passion for and am committed to working with all partners as we move forward.”
Find the full updated Kent and Ottawa County reports here:
Jen Radaz
Sr. Manager
Housing Next