Grand Rapids, Minnesota has experienced significant changes in its housing market over the past decade. This analysis examines the trends in homeownership rates, average home prices, and average rent prices, providing insights into the city's real estate dynamics. The homeownership rate in Grand Rapids has fluctuated over the years. In 2013, 66% of residents owned their homes. This percentage decreased to 59% by 2015 but rebounded to 65% in 2019. As of 2022, the homeownership rate stands at 62%. Concurrently, average home prices have shown a steady upward trend. In 2013, the average home price was $159,474. This figure rose gradually, reaching $179,199 in 2019, and then experienced a significant jump to $236,135 in 2022, representing a 48% increase over the 2013 price.

The relationship between federal interest rates and homeownership rates in Grand Rapids reveals some interesting patterns. In 2013, when the interest rate was 0.11%, the homeownership rate was at its peak of 66%. As interest rates remained low, hovering around 0.1% to 0.4% between 2014 and 2016, homeownership rates fluctuated between 59% and 62%. Interestingly, when interest rates began to rise more significantly from 2017 to 2019 (1% to 2.16%), homeownership rates actually increased, reaching 65% in 2019. This suggests that other local factors may have influenced homeownership decisions during this period, offsetting the potential deterrent effect of higher interest rates.

Rental trends in Grand Rapids have also shown notable changes. The percentage of renters increased from 34% in 2013 to a peak of 41% in 2015, before settling at 38% in 2022. Average rent prices have generally trended upward, albeit with some fluctuations. In 2013, the average rent was $655. It rose to $796 in 2017, then experienced a dip to $677 in 2018. By 2022, the average rent had increased to $774, representing an 18% increase from 2013. The population growth from 10,523 in 2013 to 10,572 in 2022 may have contributed to the overall increase in rental demand and prices.