Renting vs Buying in Grand Rapids Michigan | Summer 2015 Update
You think you’re having a tough time looking for a place to buy in this market? Try renting one! Grand Rapids is currently at nearly 100% rental occupancy, the lowest rental vacancy rate in the US. Home prices have been back to pre-crash levels for about a year now, and the market is increasingly competitive if you are looking to purchase. No surprises here!
So, what’s the best route to go? You’re putting all of this effort in…should you rent or buy? Lets take a look at typical scenario in a great rental area, Eastown, a popular Grand Rapids neighborhood near downtown, where there is a high demand and quantity of both rentals and purchases.
The Eastown Comparison:
52 homes recently sold
(What’s currently for sale in Eastown? Glad you asked.)
Average sale price: $131,780
Average #BRs: 3.5
Avg SQFT: 1743
Average Rent for a 3-4 BR 1750 sqft home in Eastown: $1400/month.
Here’s how it looks, running this scenario through the Realtor.com calculator:
Looks like buying in Eastown quickly pays for itself, comparing $1400/month rent to a purchase of a $132,000 home. But what if you’re already leasing a home in that price range, but you’re ready for an upgrade and/or increased square footage. You want a home with a nice bit of land, an entry-level home in East Grand Rapids, maybe a distinctive spot in East Hills, or something in an historic district. Your lender says you can afford a $230,000 purchase price. Here’s how that looks:
Try out your own scenairo! Here’s a tool from Realtor.com: