What is the condition of the South Bend real estate market? South Bend is a city located in St. Joseph County, Indiana. It is the fourth biggest city as well as the central government of the state.
This metropolitan city may not be as popular as other cities in the US like New York, Chicago, Los Angeles, or even Orlando. However, it doesn’t mean there is nothing to see here. Yes, South Bend is developed well with many stunning public places. There are prestigious universities, entertainment and art centers, shopping centers, parks, and still many more.
That’s why it is reasonable if many investors are interested to choose South Bend as a place for property investment. The development of those public places leads many people to come in for various reasons. Some of them go to South Bend for studying, some others are to look for jobs, and some prefer opening businesses.
In addition, it is not exaggerating to say that South Bend is one of the tourist cities in Indiana. You can see many stores here that sell handicrafts and boutiques. Enjoy the theaters and symphony orchestra played in the beautiful Morris Art Center. Well, being established in 1921, Morris is enlisted in the Best National Historical Places.
Being a place for people to come to simply spend their holidays, it also opens a chance for investors to have homes for rent. Investing in South Bend real estate is very promising. This becomes a reason why you should at least have one property in the city.
The History of the South Bend Real Estate Market
Looking at the past doesn’t always mean that you cannot move on. In terms of the real estate market, analyzing history is very important to help us determine what to do in the future. Well, if you are interested in investing your money in real estate in South Bend, make sure to learn first about the trend of its real estate market in the past.
One of the most trusted yet understandable indexes to use for analyzing the property market is Freddie Mac. This monthly index report is accessible for free and it makes reports on the change in home prices throughout the US.
Why should you analyze the history of the real estate market trend? Of course, you should as it is essential to estimate the potential of property appreciation whether for the short or long term. Anyway, the latest report from the Freddie Mac House Price Index (FMHPI) for the line of South Bend-Mishawaka MSA is as follows.
In April 2027, the house price index of South Bend-Mishawaka MSA was 128.03 while in the same month in 2022, it was 207.35. If you calculate it, the house price change percentage in 5 years is 61.9%. The yearly change is 16.4% and the monthly change is 1.6%.
Aside from analyzing the house price index of the city, it is also important to measure the House Affordability Index (HAI). It refers to a group of data to preview by real estate investors. This way, they can determine the number of demands from rental properties in a certain marketplace.
Furthermore, it is explained by the National Association of Realtors (NAR) that HAI compares the average income of a family to buy a house. It is with an assumption that they use the conventional mortgage of 20% or below. NAR uses 100 as the basic index. The higher the HAI above 100, the average house price is considered unaffordable.
HAI for the South Bend Indiana real estate per July 2021 is 176. It means that the average house price in the city is not affordable enough for a single-family there to buy. It becomes one of the reasons why around 43% of houses in the metropolitan area in South Bend are occupied by renters.
Population and Growth in South Bend
South Bend is one of the cities in the US with high population growth. High growth has even been seen since the 1950s. Meanwhile, for the last 10 years, the population has grown by 2,285. Based on some reports, from 2021 to 2022 is that for the first time in 100 years, the city’s population has grown faster than it in St. Joseph.
To understand it better, here are the key stats of the population growth in South Bend.
First, the city of South Bend is where 103,453 people are living. Besides, more than 324,500 people live in the metropolitan area of South Bend-Mishawaka.
Second, the population of the South Bend metropolitan area has grown by an average of 0.37% from year to year.
Third, it is projected that the population growth will be 0.9% between 2022 and 2050.
Current Conditions of South Bend Real Estate Market
While based on the index above, houses in South Bend are considered not affordable, it is still a good choice for many people to buy a house in the city. Particularly, it is if you compare the average price with it in other cities in Indiana.
More than that, South Bend also demanded some other benefits such as public facilities and employment. Unfortunately, despite high demands, the supplies of houses in South Bend are limited. Yes, there are not enough houses to sell to fulfill the demands that are continuously increasing.
Based on the report from South Bend Area Realtors in April 2022, supplies of houses to sell are decreased an average of 12% from year to year. On the other hand, the average selling price increased by 21%.
To make it clearer, here are the primary market statistics in South Bend Indiana in 2022.
First, based on Zillow after analyzing Bend real estate trends, the House Price Index is $162,354 per April 2022. The number is after an increase of 24.4% in a year. Meanwhile, in the last 5 years, the average house price in the city has increased by more than 82%.
Second, based on the newest report from Realtor.com per April 2022, the average listing price in South Bend is $159,900. The average price per square is $110. Besides, based on the Association of Indiana Realtors, the average selling price in South Bend-St. Joseph County is $195,000 per April 2022.
Lastly, among 32 neighborhoods in South Bend, the most expensive one is Sunnymeade with an average house price of $239,900. On the other hand, the cheapest neighborhood is in the area of LaSalle with an average price of $55,000.
Since many citizens of South Bend are more interested in renting than buying houses, you can conclude that the rental market of the city is more promising. Well, even more than just promising, it is even very hot with the continuous increase in renting costs. A house in South Bend is also demanded by many renters at once.
From 2021 to 2022, the rental cost has increased by 10%. The trend will be continuously like that along with the increase in demands. Interestingly, the trend is not only for low to medium-class real estates only but also for expensive houses.
Per April 2022, the primary market statistics in South Bend are as follows.
First, the average rent in South Bend Indiana is $1,151 per month. The data are found from the latest research from RentCafe. The average cost increase from year to year is 10%.
Second, houses for rent in South Bend are 43% of the total occupied houses in the metropolitan area of South Bend. Some popular areas for renters are Navarre, Wooded Estate, Council Oak, and Howard Park East Bank.
Lastly, the most affordable neighborhoods for renters are Reo Avenue, Lasalle Park, and St. Casimir. On the other hand, the most expensive ones are Northeast South Bend, Wooded Estates, and River Point with the peak cost at $1,700 per month.
Forecast of the South Bend Real Estate Market
Undeniably, the COVID-19 pandemic in 2019-2021 has destroyed the economy and other related sectors in the world. Of course, South Bend becomes one of the cities that get the impact. However, it is reported that the city is continuously recovering.
The level of unemployment in 2022 is only half of what it was in the previous year. Students are coming back to the city to continue their studies and they are ready to live in rental houses. Industries also wake up and they are from various sectors including tourism and accommodation, construction, health, transportation, startup, and many more.
Well, it is only the first year after the pandemic and the city is just showing its significant improvement. This is actually not really surprising as based on the latest report from Zillow, generally, house prices in the US will be significantly increased. Between May 2022 and May 2023, the increase is even up to 9.7%.
By looking at the trend in Indiana, it is forecasted that the increase will be more than the average national increase. It is based on the facts throughout 2021-2022 that the house price increase is above the average national increase.
Many big industries and companies in the city are also ready to launch new products and innovations. Some of them also enlarge their businesses which means improvement in employment. Well, you can just mention many big companies that are based in South Bend. They include Notre Dame University, the MSM Holdco supermarket, the St. Joseph Regional Medical Center, Air Wisconsin Airlines, and Honeywell International.
If you draw a line, the development of industry sectors and the increase in employment will bring a good impact to the property sector. The purchasing power of people in the city will also be increased for sure. Meanwhile, some others are also more powerful to rent houses with higher prices.
So, is South Bend a good real estate market in 2023 and the future? As long as there is no big problem like the pandemics, the answer is yes. It is also very good to start investing in 2022 as in some places, the house prices are still relatively affordable. Sure, if you prefer houses for the investment that can be developed quickly, spend more on properties located in more strategic areas.
Frequently Asked Questions
- Is South Bend Indiana a good place to invest in real estate?
Yes, it is. Niche.com even ranks the city 6th place as the best city to live in Indiana. The ratings are taken from many aspects including housing, living cost, and nightlife.
The city itself has many public places to simply access citizens. It is well known in some universities including the University of Notre Dame. Seeing from the tourism and entertainment aspects, it has a good rating also for many stores for local handmade and the incredible Morris Art Center.
- Are home prices rising in Indiana?
Yes, it is after the COVID-19 pandemics, that the home price in Indiana and other states of the US tend to increase. Particularly in South Bend, based on Zillow, the House Price Index is $162,354 per April 2022. The number is found after an increase of 24.4% in a year. Besides, in the last 5 years, the average house price in the city has increased by more than 82%.
Second, based on the newest report from Realtor.com per April 2022, the average listing price in South Bend is $159,900. The average price per square is $110. Furthermore, based on the Association of Indiana Realtors, the average South Bend Indiana housing price for selling is $195,000 per April 2022.
- Is South Bend growing?
Yes, it is. Based on the population data released by the US Census Bureau showed that the population of the city grew by 2,285 people in the last decade. It is the fastest growing era in the last 100 years.
Currently, 103,453 people are living in the city and around 325,500 are in the metropolitan area of South Bend-Mishawaka. The population of South Bend also grows by an average of 0.37% from year to year. It is predicted also that the population growth in the period 2022 to 2050 will be 0.9%.