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Average Home Values and Ownership in Zip Code 46637: A Decade of Growth in South Bend, Indiana
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 46637, located in South Bend, Indiana, has experienced notable changes in homeownership rates and housing prices over the past decade. This area has seen a general trend of increasing homeownership and rising average home prices, while rental rates have remained relatively stable.
The ownership percentage in zip code 46637 has shown a steady increase from 61% in 2013 to 67% in 2022. This upward trend in homeownership coincides with a significant rise in average home prices. In 2013, the average home price was $108,086, which has nearly doubled to $208,826 by 2022. This represents a 93% increase in average home prices over a nine-year period. The most substantial year-over-year increase occurred between 2020 and 2021, with average home prices jumping from $161,352 to $182,682, a 13.2% increase in a single year.
The relationship between federal interest rates and homeownership rates in this zip code shows an interesting pattern. Despite historically low interest rates from 2013 to 2021 (ranging from 0.08% to 0.4%), homeownership rates increased only moderately during this period. However, as interest rates began to rise more sharply in 2022 to 1.68%, homeownership rates actually reached their peak at 67%. This suggests that factors beyond interest rates, such as local economic conditions or housing supply, may have played a significant role in driving homeownership trends in this area.
Renter percentages in zip code 46637 have remained relatively stable, fluctuating between 30% and 33% from 2013 to 2022. Average rent prices, however, have shown moderate growth. In 2013, the average rent was $935, which increased to $991 by 2022, representing a 6% increase over nine years. Interestingly, the population of the zip code has also grown during this period, from 16,225 in 2013 to 18,833 in 2022, a 16% increase. This population growth may have contributed to the upward pressure on both home prices and rents.
Looking at the most recent data, the average home price in zip code 46637 continued its upward trajectory, reaching $221,797 in 2023 and $231,252 in 2024. This represents a 6.2% increase from 2022 to 2023 and a further 4.3% increase from 2023 to 2024. Concurrently, federal interest rates have risen significantly, reaching 5.02% in 2023 and 5.33% in 2024. These higher interest rates may impact future homeownership trends and housing affordability in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 46637 will continue to rise, albeit at a more moderate pace. Based on historical data and current market conditions, we project average home prices could reach approximately $275,000 to $290,000 by 2029. For average rent prices, we expect a continued gradual increase, potentially reaching $1,100 to $1,200 per month by 2029.
In summary, zip code 46637 has demonstrated a strong housing market with increasing homeownership rates and substantial growth in average home prices over the past decade. Despite rising interest rates, the area has maintained a high rate of homeownership, suggesting a robust local housing market. The moderate increases in average rent prices, coupled with population growth, indicate a balanced rental market. As we look to the future, the area is poised for continued growth in both home values and rental rates, reflecting its attractiveness as a residential location in South Bend, Indiana.
