First-Time Homebuyers Find American Dream in Midwest

Summary

Bloomberg's Paulina Cachero discusses why Grand Rapids/Kent County, Michigan is bucking the national trend of first-time homeownership being out of reach. The area benefits from a favorable home-price-to-income ratio, diversified economy, population growth, and wages about 13% above the rest of Michigan. Nearly half of local homeowners in 2025 are 35 or younger, versus a record US average first-time buyer age of 40. However, supply remains tight and affordability is under pressure as prices rise and building lags the national pace.

• Grand Rapids/Kent County has nearly half of homeowners aged 35 or younger.
• The average US first-time homebuyer is now 40 years old, the oldest since 1981.
• Grand Rapids home-price-to-income ratio is much lower for under-35 workers than the US average.
• Local wages are about 13% higher than the rest of Michigan.
• Housing inventory is roughly 30% below pre-pandemic levels.
• Grand Rapids builds homes at a slower pace than the national average.
• Affordability is eroding as Grand Rapids home prices rise.