Rental Market in South Bend, IN
Title Representative · Nashville, TN · Member since 2016 · 1 post · 0 votes
What is the rental market like in South Bend, IN? Good rental market? What are most properties renting for?
Welcome to BP and congratulations on jumping into the forums.
The City of South Bend commissioned a study in 2013 named "An Analysis of Residential Market Potential" for Downtown South Bend. The study was conducted by Zimmerman/Volk Associates, Inc. based in Clinton, New Jersey http://www.zva.cc/ . I wondered why the City of South Bend would hire an out of town company for the study until I looked at their national client list which includes over 450 reports for builders, developers, cities, non-profits, planners, investors, lenders, small companies and development subsidiaries of several Fortune 100 companies.
You can read the report here https://www.southbendin.gov/sites/default/files/fi...
The report is mainly about the residential market potential of downtown South Bend but the gist of it as it relates to your question is that on page 5 it states that approximately 60% of the households in the entire City of South Bend are owner occupied and 40% are tenant occupied.
The US Census Bureau data confirms this with their latest data showing appx 59% owner occupants and 41% tenant occupied here: https://www.census.gov/quickfacts/table/PST045215/...
So to break down the numbers in one line, from the Census Bureau link, the City of South Bend has a population of 101,516, a total of 46,324 housing units (as of the year 2010) of which 18,530 are rentals with a median gross rent of $711.00.
As far as the economic profile, since all those tenants need a job so that they can pay the rent :) here is a cut and paste summary of the area by the St. Joseph County Chamber of Commerce which you can further explore here: http://www.sjchamber.org/
St. Joseph County, branded the South Bend Region, is located in North Central Indiana, with a population of 267,618 people. The city of South Bend, population 101,190, is the economic and cultural hub of a multi-county, bi-state greater region, population 858,055 (seven counties), with a labor force of 415,426. South Bend also ranks as the fourth largest city in the state and is home to the iconic University of Notre Dame. Neighboring Mishawaka has one of the largest concentrations of retail stores in the state, and the entire region boasts affordable housing, over a dozen institutions of higher learning, easy transportation access and convenient commute times that average 20.2 minutes. Target industries include IT/data, logistics/warehousing and advanced manufacturing.
South Bend being a college town with several Universities/Colleges (Notre Dame obviously being the largest one) creates student housing opportunities for approximately 20,000 plus students among all the institutions.
All this spells opportunity and many out of town, out of state and even international investors have and continue to try and claim their stake.
As indicated by @Immanuel Price and @Aaron Linden the University of Notre Dame in partnership with the City of South Bend has contributed a lot to the revitalization of the City that is bringing new jobs and the need for new housing. As evidence of this, three years later since the downtown study by Zimmerman/Volk Associates, Inc., construction of residential condominiums, townhomes and apartments.....both new and re-purposing old buildings in and around downtown South Bend has exploded. Here is just one developer at the helm http://matthewsllc.com/ .
The City of Mishawaka which in my opinion is joined to the City of South Bend at the hip has the second largest retail corridor in the entire State of Indiana and a highly desirable school district. However according to the US Census Bureau in the City of Mishawaka, the owner to tenant ratio is approximately 50/50 here http://www.census.gov/quickfacts/table/PST045215/1...
To also break down the numbers in one line, from the Census Bureau link, the City of Mishawaka has a population of 48,261, a total of 24,088 housing units (as of the year 2010) of which roughly 12,044 are rentals with a median gross rent of $714.00.
So in summary, in my opinion, this is a strong rental area with stable economic fundamentals to sustain the tenant pool.
Anna
In my experience, South Bend has a great rental market. Most places have an average fo $600-$700. depending on area. But you can definitely find more. The city has cleaned up with a partnership with the University of Notre Dame, and if you check the economy section of the paper here, you'll find over 700 Million dollars has been flooded into development of this area. It wont be long before there's an up-tick in cost, and a decrease in availability.
Welcome to BP and congratulations on jumping into the forums.
The City of South Bend commissioned a study in 2013 named "An Analysis of Residential Market Potential" for Downtown South Bend. The study was conducted by Zimmerman/Volk Associates, Inc. based in Clinton, New Jersey http://www.zva.cc/ . I wondered why the City of South Bend would hire an out of town company for the study until I looked at their national client list which includes over 450 reports for builders, developers, cities, non-profits, planners, investors, lenders, small companies and development subsidiaries of several Fortune 100 companies.
You can read the report here https://www.southbendin.gov/sites/default/files/fi...
The report is mainly about the residential market potential of downtown South Bend but the gist of it as it relates to your question is that on page 5 it states that approximately 60% of the households in the entire City of South Bend are owner occupied and 40% are tenant occupied.
The US Census Bureau data confirms this with their latest data showing appx 59% owner occupants and 41% tenant occupied here: https://www.census.gov/quickfacts/table/PST045215/...
So to break down the numbers in one line, from the Census Bureau link, the City of South Bend has a population of 101,516, a total of 46,324 housing units (as of the year 2010) of which 18,530 are rentals with a median gross rent of $711.00.
As far as the economic profile, since all those tenants need a job so that they can pay the rent :) here is a cut and paste summary of the area by the St. Joseph County Chamber of Commerce which you can further explore here: http://www.sjchamber.org/
St. Joseph County, branded the South Bend Region, is located in North Central Indiana, with a population of 267,618 people. The city of South Bend, population 101,190, is the economic and cultural hub of a multi-county, bi-state greater region, population 858,055 (seven counties), with a labor force of 415,426. South Bend also ranks as the fourth largest city in the state and is home to the iconic University of Notre Dame. Neighboring Mishawaka has one of the largest concentrations of retail stores in the state, and the entire region boasts affordable housing, over a dozen institutions of higher learning, easy transportation access and convenient commute times that average 20.2 minutes. Target industries include IT/data, logistics/warehousing and advanced manufacturing.
South Bend being a college town with several Universities/Colleges (Notre Dame obviously being the largest one) creates student housing opportunities for approximately 20,000 plus students among all the institutions.
All this spells opportunity and many out of town, out of state and even international investors have and continue to try and claim their stake.
As indicated by @Immanuel Price and @Aaron Linden the University of Notre Dame in partnership with the City of South Bend has contributed a lot to the revitalization of the City that is bringing new jobs and the need for new housing. As evidence of this, three years later since the downtown study by Zimmerman/Volk Associates, Inc., construction of residential condominiums, townhomes and apartments.....both new and re-purposing old buildings in and around downtown South Bend has exploded. Here is just one developer at the helm http://matthewsllc.com/ .
The City of Mishawaka which in my opinion is joined to the City of South Bend at the hip has the second largest retail corridor in the entire State of Indiana and a highly desirable school district. However according to the US Census Bureau in the City of Mishawaka, the owner to tenant ratio is approximately 50/50 here http://www.census.gov/quickfacts/table/PST045215/1...
To also break down the numbers in one line, from the Census Bureau link, the City of Mishawaka has a population of 48,261, a total of 24,088 housing units (as of the year 2010) of which roughly 12,044 are rentals with a median gross rent of $714.00.
So in summary, in my opinion, this is a strong rental area with stable economic fundamentals to sustain the tenant pool.
@Anna Greer You've got two knowledgeable Local guys here with the scoop in @Aaron Linden and @Account Closed you've got some really compelling evidence here that we're definitely in the right place for continued growth. We have like you said, a string of strong cities Connected at the hip that more or less build a well rounded 30 square miles of big development all happening right now! Time to jump in!
You are welcome. If you survive through the entire 69 page Zimmerman/Volk report let me know.
Maybe we can wholesale some old downtown buildings to Matthews.....heh, heh!
How is the MFR investing in South Bend? I was keeping eye on a 19 unit property in South Bend on Loopnet but it went under contract as per the broker. I know like in Hammond or in NWI in general its more of SFR investing...not sure about South Bend.
I am not heavily focused on MFR, however, that said, I purchased a duplex and a four-plex in 2015 for a JV that I was involved in.
I observe the market every now and then for what is listed on the MLS in the investment category where any MFR would show up.
What I have consistently observed is that the inventory is severely limited to duplexes, triplexes and an occasional fourplex. Anything larger or a reasonably sized apartment complex is not that common.
That said, we do have lots of pretty large MFR communities in South Bend and Mishawaka so there is a tenant pool for that type of housing. Based on my observations, these large communities do not change hands often in my opinion.
MLS data shows that the ones that do change hands often are duplexes, triplexes, four-plexes and moderately sized apartment complexes.
Thanks for that killer post riddled with great data @Account Closed, I think I remember seeing him put up a larger multi on the west side on the BP marketplace not that long ago. Correct me if I am wrong.
I think to this point we have praised SB, and rightfully so, but I would certainly caution you in your investments. Know exactly the neighborhood you are buying in and know the risk profile you are taking on and have your plan reflect as much. Things can go from well off to downright scary in just a couple blocks as it is a city in transition that has had its share of hard times.
You are welcome.....and yes, thanks for pointing out the discrepancies within neighborhoods.
This is especially so if somebody chooses to invest in some C and below areas where the lure of cash flow may look good on paper but the headaches more often than not may eclipse the perceived returns. Such areas require a really hands on investor or a really hands on and tough property manager to make them work.
The nicer areas may be modest on cash flow and returns but the performance will be consistent without all the drama and an opportunity for appreciation to boot.