GRAND RAPIDS, Mich. — More affordable housing is in the works for Grand Rapids. Not only will it be right on the Grand River, but it's also in the heart of downtown development.
“We recognize that rents have been going up, and people have been getting priced out,” Dwelling Place of Grand Rapids Chief Real Estate Development Officer Jacob Horne said.
There isn’t much to look at near the corner of Market and Wealthy. The city has a parking lot where people can find parked Lime scooters and old concrete barriers that were once used to help with outdoor restaurant seating.
“This will be a catalyst for helping to develop that part of the riverfront and the community,” Horne said.
Dwelling Place hopes that, in a few years, if all the pieces come together, it will be a multi-story apartment complex with 80 housing units for individuals making 80% or less of the median income level.
“A development that is specifically for workforce housing and affordable housing,” Horne said.
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The housing shortage in Grand Rapids and the broader West Michigan area has prompted significant attention and action from local officials and developers in recent years. Recent studies have underscored the urgent need for additional housing units in the region.
A housing needs assessment conducted in the spring of 2023 revealed that by 2027, Kent County will require more than 34,000 new dwelling units to accommodate ongoing household growth. Compounding this issue, a separate Housing Next study released earlier this year indicated that the county will face a rental housing gap of nearly 12,000 units by 2030.
Efforts to address these challenges have seen some progress, with Kent County adding over 6,000 housing units since 2022. This influx has slightly alleviated the overall housing gap, but much work remains to be done.
In response to the ongoing crisis, Grand Rapids has modified local policy to allow accessory dwelling units, commonly referred to as garages, to be rented out, expanding the potential housing supply.
Recent and upcoming projects aim to further contribute to the housing market. In June, city officials celebrated the completion of a new affordable multi-family housing development on Pleasant Street. Prior reports indicated that Grand Rapids needed an additional 2,000 affordable apartments to meet current demand.
Moreover, a new affordable housing initiative will transform a grassy lot next to Pilgrim Rest Baptist Church into essential homes for residents. In May, a proposal for a mixed-use, four-story apartment building at the corner of Eastern and Burton Street was unveiled, boasting a cost of $6 million and designed to be fully accessible for individuals with disabilities. It would be called "The Heights on Burton."
“We’re really happy that we're able to provide housing for folks from different walks of life,” Horne said.
According to Grand Rapids, for one person to rent here in the year 2025, you would qualify if you made around $59,000.
“There are so many, so much housing that's planned for on the riverfront, and a lot of it is market rate,’ Horne said.
Dwelling Place is partnering up with P.S. Equities out of Mt. Pleasant. It owns a piece of property next to the city-owned parking lot.
In 2024, the city approved the two developers for these pieces of land, pending the progress of this housing project.
“The other cool thing is, there's a lot of outdoor areas as well, so they are incorporated in the design. So we have an area for some street performance art. We have an area for food trucks. So it's just going to be a really exciting development that we're just thrilled to be a part of,” Horne said.
Dwelling Place is still awaiting approval for state tax credits. They believe that having the city partner on this project will be beneficial.
