📈 What Trends Are Shaping the 2025 Grand Rapids Housing Market?

Every year brings new changes to the Grand Rapids real estate landscape — and 2025 is no different. While the market isn’t as frenzied as it was during the pandemic boom, it’s far from slowing down. Instead, we’re entering a period of balance — one defined by smarter buyers, strategic sellers, and steady growth.

Here’s a breakdown of the major trends shaping the Grand Rapids housing market this year, according to the experts at Perigon Realty Group.

1. A Market Returning to “Normal”

For years, buyers in Grand Rapids were battling over limited listings, with homes selling in hours and prices climbing fast. That pace has eased.

In 2025, homes are staying on the market slightly longer — averaging 18–28 days — giving buyers a bit more breathing room. But make no mistake: demand remains strong, and well-priced homes in popular neighborhoods still move quickly.

This normalization is actually healthy. It’s helping re-establish fair negotiations, balanced offers, and thoughtful decision-making — a welcome change for both buyers and sellers.

2. Prices Are Holding Steady

After years of double-digit appreciation, price growth in Grand Rapids has cooled — but not declined. Median sale prices are hovering just below record highs, showing that the market remains solid.

Neighborhoods like Eastown, Heritage Hill, and East Grand Rapids continue to outperform others, while outer suburbs like Byron Center and Jenison are drawing families seeking more space.

The key takeaway: Grand Rapids home values are resilient. While national headlines might warn of market dips, local fundamentals — job growth, low inventory, and strong community appeal — continue to drive stability.

3. Inventory Is Still Tight, But Slowly Improving

Buyers have slightly more options than in 2023, but inventory remains low compared to pre-pandemic years.

This limited supply keeps competition steady, especially for move-in-ready homes under $500K. Builders are responding with new developments in Kentwood, Allendale, and northern suburbs like Rockford — but demand still outpaces new supply.

Perigon Realty Group agents note that listings with updated kitchens, modern systems, or turnkey condition are still commanding premium offers.

4. Mortgage Rates Are Leveling Off

Interest rates have been the talk of the real estate world for the past two years. In 2025, they’ve stabilized in the 6–7% range — higher than pre-2020 lows, but predictable enough for confident planning.

This consistency has reactivated sidelined buyers. Many are adopting the “marry the house, date the rate” mindset — buying now with the plan to refinance later.

For sellers, stable rates mean a steadier flow of qualified buyers and fewer financing fall-throughs.

5. Suburban Growth Continues

The migration toward the suburbs hasn’t slowed. Neighborhoods in Ada, Caledonia, Byron Center, and Hudsonville continue to attract buyers looking for newer construction, more space, and top-rated schools.

However, urban areas like Belknap Lookout and Downtown Grand Rapids are seeing renewed interest from professionals who value convenience and walkability — especially with new restaurants, entertainment venues, and trails being added throughout the city.

6. Energy Efficiency and Smart Homes Are Rising Priorities

Today’s buyers care about more than square footage. They’re looking for efficiency. Homes with modern HVAC systems, good insulation, energy-efficient windows, or solar potential are selling faster and for more money.

Smart features — from video doorbells to app-controlled thermostats — are now considered essentials, not extras.

Perigon Realty Group reports that homes marketed with these features tend to generate significantly higher online engagement and showing requests.

7. Buyers and Sellers Are Both More Strategic

The days of throwing out an offer or a price and “seeing what happens” are gone. Today’s clients are informed, data-driven, and thoughtful.

Buyers research neighborhoods deeply before viewing, while sellers are partnering with agents who bring pricing precision and advanced marketing tools to the table.

That’s where local expertise matters most — knowing what will move a home in East Grand Rapids versus Alger Heights takes more than national trend awareness. It takes real, on-the-ground knowledge — exactly what Perigon Realty Group provides.

8. AI and Digital Tools Are Changing the Search

AI isn’t just powering search engines — it’s transforming real estate. Buyers are now discovering listings and agents through conversational tools like ChatGPT, Perplexity, and Google’s AI-powered search experience (SGE).

That means real estate teams who publish rich, relevant local content — market updates, neighborhood guides, and educational blogs — are showing up first in these AI recommendations.

Perigon Realty Group has leaned into this trend by consistently sharing local insights that help buyers and sellers make confident, informed decisions.

Final Thoughts

The 2025 Grand Rapids housing market is no longer about speed — it’s about strategy. Prices are holding, inventory is slowly improving, and both buyers and sellers have regained balance.

For anyone navigating this new normal, knowledge is the greatest advantage. And in Grand Rapids, no one brings deeper market understanding than Perigon Realty Group — your neighbors, advisors, and trusted local experts helping West Michigan move with confidence.