Home Rental industry Price limits are pushed back in the South Bend-Mishawaka rental market

Price limits are pushed back in the South Bend-Mishawaka rental market



The well-documented housing shortage that has driven home and condominium prices up in recent years has now found its way into the rental market with the possibility of waiting lists and higher in-store prices for those who have. need an apartment or a house. For rent.

“It’s a very similar situation for rentals and for homes for sale,” said Claudia Kelleher, director of property management for Cressy & Everett, which manages some 315 homes and apartments for rent across the region. “Most of the houses we are renting have multiple applicants. It’s very competitive.

And demand is spreading across the market – from properties deemed affordable by the Department of Housing and Urban Development to class A luxury apartments with high-end appliances, features and amenities that can cost around $ 1,000. for a small studio up to $ 3,000 per month. for a three-bedroom model, said Heather Turner, senior general manager of market-priced apartments for Bradley Company, which manages about 700 high-end units in St. Joseph County.

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Some of the issues that have caused a tight supply in the single-family housing market are the same as those facing the rental market. The easing of restrictions linked to the pandemic and improvements in the economy have led to a resurgence in the number of people seeking better living conditions, whether it is a house or a rental.

At the same time, the pandemic has also led to greater acceptance of remote working arrangements, which has made it possible for workers in Chicagoland, for example, to seek out homes and rentals here that offer more for their dollar as well as more. of freedom in the event of another pandemic lockdown, observers said.

Additionally, some people choose to sell their home now to take advantage of the warm market and instead turn to renting, waiting for a new home to be built or perhaps deciding that they don’t want to worry about housing anymore. maintenance of any type.

And even the growth of Michigan’s cannabis industry has resulted in increased demand for housing and rentals in Niles, Buchanan and other towns across the border where hundreds of new jobs have been added. created over the past two years, Kelleher said.

Room for more, rentals near Notre Dame

As demand increased, some properties were taken off the rental market because it could be considerably more lucrative to convert them to vacation home rentals – especially properties near the University of Notre Dame, Beau Dunfee said, management broker at Weichert Realtors – Jim Dunfee and associates.

And Kelleher pointed out that some people who might have been “accidental owners” because the homes they had previously moved out of had not been sold are taking advantage of the boiling real estate market to ultimately sell properties that they might have been. rental in recent years.

Strong demand has already pushed average rental prices up by around 10% this year, and they could continue to rise as more and more people continue to enter the market, Kelleher said.

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The affordable housing crisis in South Bend

While private companies could charge higher prices depending on demand, the South Bend Heritage Foundation, which manages around 420 rental units in the city, is extremely limited in the increases it can request as it is responsible for providing. affordable housing, said Marco. Mariani, executive director of the agency.

“We are full,” Mariani said. “And when one of our units becomes available, we try to prepare it for rental as soon as possible. ”

Due to the uneven post-pandemic recovery, the demand for affordable housing and rentals is even more pronounced, Mariani said. “If we could build 80 more units, we would have no problem filling them up.

High-end apartments

And even with the great disparity in rental prices, that’s what high-end developers think too.

Just a few years ago, some wondered if the market could absorb high-end properties like Grandview Flats and Townhomes, The Residences at Toscana Park, The Ivy at Berlin Place, The Hibberd, Studebaker Lofts and the Mill at Iron. Works Plaza.

Today, most are satisfied.

And even with 144 new high-end apartments ready for occupancy at the end of August in the 10-story 300 E LaSalle building, developer David Matthews said he’s never worried so much about demand. for the building as well as for labor and supplies. necessary for the realization of the project.

“Just over 18% are pre-published,” he said. “I don’t think we’ll have a problem once people can see what a completed apartment will look like.”

Even with prices ranging from $ 1,250 to $ 3,000 per month, the building will be attractive to those seeking luxury living with city views, a garage, community amenities, an on-site grocery store, a pharmacy in proximity and other businesses nearby. Commerce Center and a pedestrianized district that includes many restaurants, bars, parks and other attractions, he said.

Even Turner, who runs other high-end properties in downtown South Bend for Bradley, thinks the new building shouldn’t have a problem filling up as she sees nothing but continued growth. of demand in the immediate market.

“The research,” she says, “tells us the market can absorb it.”



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