TRANSFORMANDO spring cohort shares lessons. PAGE 3
APR 19, 2021 VOL. 39, NO. 8
The Business Newspaper of Metro Grand Rapids, Holland, Muskegon & West Michigan
THIS WEEK
EXPOSURE CAN CHANGE A LIFE
Salvador Lopez’s work with KConnect promotes a ‘cradle-to-career’ approach to community impact. Page 11
Cost of housing far outpaces rise in wages GRAR says first-time homebuyers especially are struggling in a hot market. Ehren Wynder
ewynder@grbj.com
School daze State superintendent proposes more learning days to combat COVID-19 slippage. PAGE 3
Wine notes State reports more farms cultivating more acres of wine grapes over last five years. PAGE 4
WORK INITIATIVE MSF approves $7.5M in Regional Talent Innovation Grants, $1.5M for Michigan STEM Forward internship program. Page 4
THE LISTS
The area’s top breweries and brew pubs. Page 6 The area’s top distilleries. Page 7 The area’s top wineries and cider mills. Page 7
While workers in the Grand Rapids-Wyoming metro area have seen their wages grow by 5.2% over the past six years, the area’s average sale price for a single-family home has increased 64.5% during the same period. According to the Greater Regional Alliance of Realtors, the average home sales price went from $152,274 in January 2015 to $248,170 this January. According to GRAR, 99.6% of single-family homes sold above the list price in January 2021 compared to 96% in January 2015. The average number of days a single-family home was on the market in 2015 was 71, compared to 34 this year. Julie Rietberg, GRAR executive director, said the problem of affordability comes from availability, particularly availability of homes affordable for people who
make lower wages and are just entering the housing market. Primarily, builders are not building houses a first-time homebuyer would consider affordable, she said. “If you look at how housing has increased in this area, it’s lightning speed compared to salary and wage increases,” Rietberg said. “What’s interesting is if you look at people coming here from other areas, they think it’s affordable. They sell their house elsewhere for $1 million and can buy a house here for half of that. The difficulty is in the first-time homebuyer range.” Rietberg said the current market gives builders little motivation to build for that first-time buyer market. These conditions stem partly from the skyrocketing cost of lumber. Lumber prices have risen more than 180% since last spring, driving up new home prices. Dawn Crandall, political affairs director for the Home Builders Association of Michigan, said the price of shingles has gone up as well, making roofing more expensive. CONTINUED ON PAGE 8
According to HBA figures, the median new home price is about $287,000 in the Grand Rapids/Kentwood area, and the income needed to be able to afford such a home is about $67,000 per year. Photo by iStock
New leader refines The Right Place game plan Randy Thelen reframes the economic development agency’s existing strategy under three new pillars. Rachel Watson
rwatson@grbj.com
As The Right Place moves through the second year of its three-year strategic plan, the new guy at the helm has some terminology changes he believes will help more effectively describe its plans. Randy Thelen, president and CEO of The Right Place since March 1, said in a recent meeting with the Business Journal staff
that he celebrates and wants to build on the 33-year legacy of his longtime economic development peer, Birgit Klohs, who retired as top leader of the organization in January. During the leadership transition period, he said he and Klohs both agreed now is not the time to ease off the gas pedal, because the region’s competitors for talent and investment are not stopping, and West Michigan can’t Thelen afford to lose the ground it’s gained in the past few years rela-
tive to other U.S. metro areas. “We’ve got a lot of opportunity here, and I think we have stories to tell. We’ve got to get the market to understand this is a unique moment coming out of a pandemic. Do we sit back and let it pass us by, or do we attack and be bold and try to leapfrog some of our competition?” Thelen said. “This pandemic has caused a recession, caused conditions that we’ve never seen globally quite like this before, where it’s universal; it’s everywhere. Communities that have poor strategy and poor leadership are going to do poorly, and communities that have strong leadership and strong vision are going to perform really well. We’ve got the makings of (the latter) here, and we’ve got to take full advantage.”
GRBJ.COM Vol. 39, No. 8 $2.00 a copy. $59 a year © Entire contents copyright 2021 by Gemini Media. All rights reserved.
Inside Track ...... 11 Guest Columns.. 16 Economy for all
CITY’S equity plan moves forward.
Change-Ups ..... 20 Calendar .......... 20 Public Record .... 21 Street Talk ...... 22
PAGE 3
Although, as the Business Journal reported in December, The Right Place performed under plan goals in 2020, attributable largely to the pandemic-induced recession — with job creation and retention numbers, new and retained payroll, and wage goals well below the mark the organization would have liked to hit at the oneyear point — Thelen said when compared to other regions’ capital investments during the same period, Grand Rapids stands out. He cited Perrigo’s decision to invest $44.7 million to move its North American headquarters from Allegan to downtown Grand Rapids, which will create 170 jobs, as one of the shining examples, CONTINUED ON PAGE 8