Grand Rapids, MI Struggles with Low Starter Home Availability Compared to Other Cities

For many prospective homeowners, the dream of a starter home has felt increasingly out of reach. Rising prices and climbing mortgage rates have compounded the challenge, making affordable options feel scarce.

Economists at Realtor.com® found that nationally, the share of starter homes in active inventory fell from 38.1% in August 2019 to 36.2% in August 2026. During that same period, starter home prices rose by 30.8%, from approximately $260,000 to $340,000.

In Grand Rapids, MI, the market has followed this trend, experiencing a downturn in available starter homes in recent years.

Starter home availability sees a decline

A starter home is typically defined as a property priced at roughly 80% of a metro's median list price, making it more accessible for a first-time buyer or a household with an income at or below the area median. These homes are generally smaller and offer a lower-cost entry into homeownership, improving housing affordability.

In Grand Rapids, the share of starter homes was 32.8% in 2019 and remained steady at 32.8% in 2022. However, by 2026, that share had decreased to 31.4%.

This represents a 1.4 point change decline since 2019, reflecting a tightening market for entry-level buyers in the area.

How Grand Rapids compares to the rest of the Midwest

Among the other Midwestern metropolitan areas tracked, Grand Rapids ranked near the bottom with a 2026 starter home share of 31.4%, outpacing only Madison, WI at 29.4%.

By comparison, the highest overall starter share in 2026 belongs to affordable Midwest and Rust Belt metros: Toledo, OH (42.1%), St. Louis, MO (40.7%), and Detroit, MI (39.8%).

Generated with AI assistance and finalized through human editorial oversight by Dina Sartore-Bodo and Gabriella Iannetta.