Michigan Real Estate News

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Metro Detroit’s Affordable Housing Shortage Continues

High rent is pushing people to look for new homes, but buying is a challenge. Multiple offers come in over the list price and over the budgets of many of the buyers, and that’s if they can find something within their budget. Renters and first-time buyers are especially struggling. Insufficient new construction, zoning rules that limit where housing can be built as well as wage growth that hasn’t kept up with inflation contribute to keeping the supply low. Average sales prices of homes in Michigan have risen 84 percent between January 2013 and October 2021. Pre-pandemic, nearly one in five homeowners spent more than 30 percent of their income on housing. That figure worsened over the pandemic.

 

 

Adaptive Real Estate Trend Is On The Rise

U.S. developers are embracing the office-to-housing conversion trend.  Between 2020 and 2021, 32,000 new apartment units were created by converting existing building spaces that had been used for other purposes. Forty-one percent were former office buildings. In the last year, Grand Rapids has approved zoning changes that allowed commercial building owners to  convert first-floor retail into residential space.  Other cities leading the adaptive real estate trend include Washington, D.C., Chicago, Los Angeles, and Cleveland.  Last year was the biggest year on record for adaptive real estate.

 

 

Up-North Brewing Company Buys Inn To House Employees

A lack of affordable housing in northern Michigan is cramping the style of northern Michigan’s businesses. Short’s Brewing Company needs to hire summer workers, but future employees have nowhere to live.  In a creative problem-solving move, the brewery bought the Bellaire Inn and is converting and updating the 26 units as space for its incoming hires. They’ll offer local businesses an opportunity at the remaining units.  Each unit will be fully furnished with a bathroom, fridge and microwave. All utilities will be included. The brewery will hire a full-time, on-site inn keeper.