Michigan’s Residential Real Estate Market Is Stabilizing

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The 2023 real estate market is finally starting to look like it might normalize. Seasonality is back in the resale market, and rent increases and high supply costs have mostly stabilized. However, interest rates will remain high, pricing some buyers out of home ownership. Some materials costs continue to be issues. While materials costs have rebounded for the most part, builders are now more conditioned to check on lead times and suggest alternatives if long waits are indicated. Building materials that once took eight months to arrive are now arriving after 4-6 weeks. Lumber is at pre-pandemic prices, while materials like concrete continue to be expensive. Rents are stabilizing. Fewer people are leaving apartments to buy homes, and people are doubling up. Home sale prices are dropping in some areas, like Wyandotte, Southgate and Riverview. Experts are expecting the industry market to contract, with realtors who are inexperienced in a tight market leaving the business.

 

 

Kent County Housing Snags Millions In American Rescue Plan Funds

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Kent County housing is in line for almost $20 million by way of American Rescue Plan funds. The Kent County Revolving Housing Fund will receive $17.3 million, and an additional $500,000 is allotted to Housing Kent for the Kent County Equitable Housing Initiative. The funds represent one of the most significant investments in affordable housing by West Michigan local government. The funds will support new and rehabilitation projects with lower interest rates, allowing the community to leverage $3.30 for every dollar invested. The Kent County Equitable Housing Initiative will help with changes to local zoning.

 

Grand Rapids and Grand Haven Receive State Funding For Contamination Cleanup

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The Michigan Department of Environment, Great Lakes and Energy has awarded a $1.73 million brownfield cleanup grant to Grand Rapids and Grand Haven. The monies will be used for three residential and mixed-use projects on properties contaminated by gas and oil. Grand Rapids’ Boston Square Together is one of the projects that will benefit from the grant, enabling the Brownfield Redevelopment Authority to address the environmental contamination on the site. The monies will also be used for future commercial condominiums in Grand Haven and a planned residential development in northeast Grand Rapids.

 

Gun Lake Tribe Plans Development on U.S. 131

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The Match-E-Be-Nash-She-Wish Band of Potawatomi Indians (the Gun Lake Tribe) has begun a six-month planning process for a development on 1,200 acres along U.S. 131 in Allegan County. The tribe has been buying land for years, with most of the acreage between 133rd and 128th avenues on the east side of U.S. 131.  The development could bring retail, housing, health care, manufacturing, entertainment and dining establishments. The tribe and Gun Lake Investements (the tribe’s non-gaming economic development arm) hired St. Charles WBK Engineering to oversee the planning. The planning process will help the tribe evaluate non-gaming opportunities for the site.

 

Saugatuck’s Clearbrook Golf Course Has New Owners

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The new owners of Saugatuck’s Clearbrook Golf Course have no concrete plans for changes to the course other than small aesthetic amendments like burying overhead power lines. Minnesota Vikings quarterback Kirk Cousins and his wife, Julie, view their purchase as a way to invest in the community and plan to maintain the golf course which has been in place since 1926. The purchase did not include the Grill Room Restaurant. Jim and Candy Jeltema will continue as owners of the restaurant. Although they no longer own the golf course, the Jeltemas will continue to operate it.

 

Michigan Landlords and Tenants May Be Facing Big Changes

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The State Court Administrative Office has proposed new rules that would affect eviction cases. The proposal includes an option for online pretrial hearings in eviction cases, a tenant requirement to give landlords 48-hour notice if a jury trial is desired, a requirement that tenants be served in person if the landlord wants an immediate default judgement, the creation of a minimum 7-day window between pretrial hearings and trials, and the ability for tenants to get an automatic stay if they’ve applied for rental aid. The aim is to allow more time for commercial and residential tenants to pay what is owed when they fall short. In some cases, this will lengthen the eviction process. The intent is to continue the advances that were made during the pandemic. The rule changes are in a public comment period until Tuesday.

 

West Michigan Projects Receive Rehabilitation Grants

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Multiple projects in West Michigan have received almost $19 million in placemaking and real estate rehab grants from the state. The Right Place, the city of Grand Rapids and city of Muskegon were awarded $18,991,166. Twenty-two grants totaling $83.8 million were approved by the Michigan Strategic Fund board. The grants are part of the Revitalization and Placemaking (RAP) incentive program created to address the impacts of the COVID-19 pandemic in Michigan. The program grants up to $5 million per project for real estate rehabilitation and development and up to $1 million per project for public space improvements.  Up to $20 million can go to local or regional partners who develop a coordinated subgrant program.

 

 

The Gillespie Group to Transform Lansing’s Former Sears Location

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The Gillespie Group is looking to transform a major business corridor in Lansing, Michigan by developing a former Sears location. Located at 3131 E. Michigan Ave., the property is being marketed as ROECO as a tribute to Sears Roebuck.  Gillespie Group’s project aims to transform the property into a mixed-use entertainment destination. It has already hooked the attention of local and national investors. The new development would come to be as thousands of new housing units are being built across the Lansing area. ROECO is situated in the heart of the region and across the street from new dining, housing and hotel rooms. The timeline and and final product of the project will be in flux as the Gillespie Group continues to find new partners.

 

Inflation Impacts Property Taxes With Highest Increase Since 2007

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Michigan homeowners can expect to see bigger than normal increases in their summer property tax bills. Thanks to this year’s inflation, many need to prepare for even bigger hikes next year. The inflation rate adjustment for this year’s property taxes is 3.3%, the highest it has been in 15 years. The rate is the maximum increase in taxable value that can apply this year to Michigan homes that haven’t changed ownership or seen additions to the property. The multiplier hasn’t been over 3% since 2007. Inflation’s impact on food and gas prices are obvious to consumers, but its impact on property taxes can be unexpected and somewhat hidden.

 

 

Utility Companies Seek Land For Solar Farms

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Michigan utility companies are securing real estate to expand their solar energy generation capabilities as consumer demand accelerates. DTE Energy Co. needs 20,000 to 35,000 acres of southern-facing flat land to erect solar arrays over the next 10-15 years. Consumers Energy Co. currently generates 40 megawatts of electricity from solar and plans to be at 8,000 megawatts by 2040. That will require between 40,000-56,000 acres of land. Customer demand and land usage is a balancing act that Lansing policymakers haven’t yet addressed. Industry leaders anticipate some community resistance.