Will Grand Rapidians rely on the co-op option for downtown housing?

Grand Rapids has a very low vacancy rate for its rental housing. It has, in fact, the lowest vacancy rate in the nation -- 1.6 percent -- for a number of reasons. As a result of the housing meltdown and the Great Recession, many Americans have damaged credit and cannot qualify for a mortgage or, having lost their homes, do not want to invest in home ownership again. Also pushed into the renters’ market are young college graduates. A generation or two ago, young professionals would have been looking for houses to purchase, but now they are burdened with student loan debt or have relocated to find work and don’t want to explore longer-term options.

Grand Rapids also has a number of colleges, including Grand Valley State University and Grand Rapids Community College, both of which are located downtown where demand for housing is already high. Additionally, while Americans in the latter part of the 20th century were eager to move out of the city and to the suburbs, that trend is reversing as younger people struggle to afford cars and pay for gas on stagnant wages and with fewer job opportunities. As restaurants, breweries, farmer’s markets, sports and cultural venues continue to multiply in Grand Rapids, people of all ages want to be on hand to enjoy them.

Furthermore, the majority of Baby Boomers are not yet ready to retire, often because they lost money in the recession. Unlike their parents, many Boomers do not own their housing outright and will have to make different choices than their parents did when Social Security becomes their main source of income.

Given that the housing market downtown is already tight and the price of housing is rising, what are the options for people seeking to live downtown who cannot afford sky high rents? One type of housing is being floated as a way to reconcile supply and demand: co-ops.

Co-operative housing is a less private and more communal way of living that allows people to get to know each other and pool their money to better afford both room and board. Typically, co-op residents have private bedrooms but share kitchen and living areas. Co-op ownership options vary, but frequently co-op residents share household chores and pay fees that provide meals and utilities at a much reduced cost. Nationwide there are co-ops that are created to meet the needs of single people, creative groups, college students, retirees, and families. The rules and requirements of each of these will vary according to the special needs of the groups these co-ops serve.

Could offering more co-op housing options help more people be able to enjoy the city’s expanding list of cultural and culinary venues? The answer is obviously yes. By reducing the cost to live downtown these residents will be able to spend money they would have allocated to rent on healthcare, dental care, organic food, theater tickets, dining out, and travel. In some areas, however, home owners are pushing back against the idea of co-ops, worried that their residents will be loud and unpleasant neighbors. Whether the city will allow more co-ops to open and groups of people will choose to embrace co-ops as a solution to current societal problems remains to be seen.