Elkhart to add 800 housing units in two years, outpacing the past decade
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Developers are set to break ground soon on several housing projects as part of the ASPIRE Elkhart 2025 construction season. The projects are expected to bring almost 800 apartment and housing units online over the next two years, that’s almost the same number built in the last decade.
A roster of infrastructure, public safety, quality of place and neighborhood projects have been planned as part of efforts to make significant investments to position the city for future success and economic growth.
A regional housing needs analysis done in 2024 by the Michiana Area Council of Governments, in partnership with the South Bend-Elkhart Regional Partnership and the Community Foundations of Elkhart, Marshall and St. Joseph counties, found that Elkhart County would need to add more than 26,000 units to meet housing demand over the next decade.
“Presently there’s a significant gap,” Elkhart Director of Development Services Mike Huber said. “About 30,000 people a day work inside the city of Elkhart who do not live inside the city of Elkhart. We strongly believe that if we can find additional opportunities for folks to live in the city, they would choose to.”
Slower-than-normal build rates, an aggressive interest rate environment, rising construction costs and an aging population seem to have contributed to the current decline in both affordable and market rate new builds. Across the county, the number of building permits issued drastically dropped from a 250-500 range over the past decade to just 94 in 2024.
Huber speaks about the significant gap in housing in Elkhart County
Popularly known as the “RV Capital of the World,” and with a strong manufacturing workforce base, Elkhart’s economy is expected to grow at a steady pace over the next decade. Presently, there are more jobs than housing units in the county.
The study also found that residents making less than 60% of the area median income are the most severely cost burdened in terms of housing, spending more than 30% to 50% of their income on housing costs.
515 East
To ease the burden on these groups, more than 100 affordable units are expected to be completed over the next year, made possible by low income housing tax credits. RealAmerica’s 515 East is one of such projects.
“We also have partnerships with La Casa and Habitat for Humanity for additional units both at a rental and at a home ownership level, for folks in that less than 60% AMI,” Huber said. “We worked with Habitat on an eight-unit subdivision last year. They’re also getting ready to break ground on a 26-lot subdivision in the city of Elkhart.”
Originally vying for a suburban development, RealAmerica decided to build in downtown Elkhart after meeting with the city’s planning team and seeing other projects along the riverfront.
“The city identified this site that they thought would be great for housing,” RealAmerica Executive Vice President Michael Surak said. “There was a building that had been on it that had a lot of deferred maintenance and other issues, so we saw it as a great opportunity to repurpose the site and redevelop it into housing.”
Comprising a mix of 16 one-bedroom and 32 two-bedroom apartments, 515 East is a mix of affordable and workforce housing apartments. Folks making between 30 to 80% of the area median income would qualify for the units.
“We have a really good mix of multiple affordability levels,” Surak said. “So I think we’ll capture a good range of what’s needed there for the community.”
Near the newly redeveloped area north of the river, with a new Martin’s grocery store and the Elkhart Health & Aquatics Center, the location had amenities that made it a great fit for a housing development, officials said. Demolition is complete, site work has begun, and Surak said he expects the project to be ready by March 2026.
Federal low income housing tax credits, a permanent loan through Merchants Bank of Indiana, a development fund loan from Indiana Housing and Community Development Authority, and a forgivable loan from the city of Elkhart make up the project’s funding stack.
“We usually get some assistance from local municipalities on a lot of these affordable workforce housing developments because the cost to build them is really not any cheaper than building a market rate apartment,” Surak noted. “We’re restricted on what rents we can charge, so we’re fortunate to get some assistance from the city of Elkhart on this project.”
The project will feature a rooftop deck, a community space, fitness center, business center, a dog park and wash station. Pre-leasing is expected to open 90 days prior to occupancy. RealAmerica’s Diamond View Apartments, an affordable housing project in South Bend is expected to be completed by the end of this year.
The Delta
Market rate housing developments are also included in the ASPIRE Elkhart initiative. Led by Dave Weaver, WeImpact is developing The Delta, a three building residential project, with 89 apartment units in phase one expected to open in August. The project will have retail spaces on the ground floor.
An additional 20 apartment units and 15 townhomes are in the design phase and expected to come online over the next few years.
“We have seen a lack of investment and development of housing and Class A buildings and Dave Weaver, the founder of WeImpact would tell you, ‘it’s really because no one else would,’” WeImpact Marketing and Community Partner Meggan Fink said. This is our hometown, this is where our whole team has grown up or has lived for a long time. We have a passion for this community.”
The group received $6.5 million in state READI 1.0 funds to support its $68 million River District project with a mix of rental and for-sale housing options, including upwards of 43,000 square feet of retail and commercial spaces. Over the next decade, the developer plans to invest almost $200 million in The Delta, across the north and south axis of Jackson Blvd.
Subject to approval from the Indiana Economic Development Corp, the group could receive another $9.5 million in READI 2.0 funds, following the success of its READI 1.0 project. If approved, WeImpact plans to build a wraparound parking garage to ease the parking burden in the River District and potentially another 250 dwelling units on Jackson Blvd.
“While we may not have solved the housing problem, our hope is to make a huge impact in this community five years from now with the 300 to 350 dwelling units that we’ve contributed for people to live here,” Fink said.
WeImpact invests in public artwork to go along with each new building it puts up, engaging local artists across Indiana and enhancing the neighborhood appeal.
Flats at Pine Creek
South Bend-based Holladay Properties plans to break ground on its 252-unit Flats at Pine Creek development by mid-May. While the project is mostly market rate, Huber said the city was able to strike a deal commensurate with their investment in the project to make about 27 units available at rents affordable to those making below 80% of the area median income.
“We think it answers a market need for what we’re seeing out there in Elkhart,” Holladay Properties Development Manager James Randolph said. “There’s the need for workforce housing and that is the target cohort for this project. We’re delivering nice, luxury units at market rate.”
With a $48 million price tag, the project is set to receive $6.5 million in tax increment funds from the city. The development will consist of seven residential buildings with a 50% one-bedroom, 44% two-bedroom and 6% three-bedroom unit mix. Amenities include a standalone clubhouse, a gaming area, a 24-hour fitness center, an outdoor pool, a dog wash room, a dog park, grill stations, lounge seating and a robust amount of sidewalks.
Part of a larger Pine Creek at 17 development consisting of office, parking, restaurant, hotel and assisted living spaces, the project sits at the intersection of U.S. 20 and County Road 17.
“We’re kind of equidistant to a lot of different employment nodes in the community,” Randolph said. “We think that’s going to make us a pretty attractive offering for most people looking for housing in the area.”
Randolph said the project will be leased out in phases, with the first 36-unit building and clubhouse expected to be ready by April 2026. The remaining six buildings will be made available in six-week installments.
“The rental rates in Elkhart have been relatively flat for a number of years, which makes new deals hard to pencil when you know you’re looking at an inflationary environment with construction pricing going up and a more expensive debt market,” Randolph said. “It’s nearly impossible to get new deals done without these super instrumental public private partnerships. Hats off to the city of Elkhart for sticking through it with us, being creative and getting this thing figured out.”
Huber said the city is hoping to finalize a $50 million 215-unit development deal with Garrison Frazier in the Benham neighborhood. He also said that once the new combined Public Safety Center opens, the city expects it to spur even more residential development downtown.
“We’re happy to talk about potential development sites that have been RFPd in the past, or development site opportunities that might be coming up again in the future,” Huber said. “We’re interested in engaging with developers who have interest in investing in Elkhart.”