Overall, West Michigan's multifamily sector is in a steady position to start 2024. However, one area did show obvious signs of slowing down — investment.
Colliers' first-quarter market report, which includes areas like Grand Rapids, Battle Creek, Lakeshore, Northwest Michigan, Lansing and Kalamazoo, showed that the rolling fourth-quarter average dropped to $591.9 million from $761.1 million in the previous three months. Additionally, the average sales price per unit was cut in half, going from over $120,000 to $62,296. This came amid "reduced transaction velocity and continued investor caution," according to Colliers.
"Buyers remain focused on stabilized, lower‑risk assets as underwriting adapts to tighter capital market conditions," it added, as cap rates remained steady at 6.2 percent.
But outside of the weak investment market, everything else moved in the right direction for multifamily in West Michigan.
Most notably, rents increased by $24 to per square foot to $1,380 per square foot, which was up 3.2 percent year-over-year.
Absorption increased to 243 units and outpaced the supply that came online, which was 227 units. That came as construction dropped to 3,062 units versus 3,123 in the fourth quarter of 2025.
Moreover, occupancy was flat at 93.6 percent.
Overall, Colliers referred to the first quarter fundamentals as "stable," with certain submarkets in better positions than others.
"Performance remained strongest in the lifestyle‑oriented submarkets of Grand Rapids, Lakeshore, and Northwest Michigan, where sustained demand, limited concessions, and steady absorption supported above‑average rent levels," the CRE firm wrote.
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