Housing key to sustained economic growth for St. Joseph County
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
As St. Joseph County races to keep up with economic growth brought on by the $11 billion Amazon Web Services data center and the $3 billion GM/Samsung SDI electric vehicle battery plant, the small town of New Carlisle is grappling with one big question: Where will everyone live?
A recently approved 69-acre development about a mile from the town limit, Hedgecroft Village, could bring hundreds of new homes to the west of New Carlisle—providing much-needed housing in a region facing a well-documented shortage.
With billions of dollars in investment tied to advanced manufacturing and tech, demand for housing in St. Joseph County has outpaced supply, raising prices and putting pressure on working families.
But it is not just New Carlisle feeling the crunch; a regional housing study found that all of St. Joseph County would need to add over 28,000 units over the next decade to meet the demand.
Housing Needs & Shortages Across the Region
“The regional housing study was a confirmation of things we’ve already seen on the ground in South Bend,” South Bend Executive Director of Community Investment Caleb Bauer said. “Chief amongst them being that we’re lacking supply pretty much across all income levels in our regional market.”
South Bend is now using an “all of the above” approach to stock up on housing for all income levels. The study found that rent prices within the county range from $650 to $2,650.
“We know we need more residential, and we know we need some more commercial in the area to support the AWS project and GM project,” St. Joseph County Executive Director of Economic Development Bill Schalliol said. “So we’re trying to encourage the right type of projects done the right way that really will benefit the town and the region.”
Schalliol speaks about the county’s housing crunch.
Already, much of the housing stock in New Carlisle and surrounding areas has been snatched up by workers who moved in to work on the AWS data center. With GM finally pulling its building permit last week, the largest in county history, and construction expected to start by early May, even more workers are expected to move in soon, Schalliol noted.
“We really don’t have much room for additional housing within the town limits,” New Carlisle Town Council President Marcy Kauffman said. “We’re really undergoing quite a transformation, but we don’t even have a firm grasp on what that is going to look like.”
Kauffman is wary that New Carlisle, a town established in 1835, will lose its “quintessential small town” feel. Until now, she said the town had managed to grow at an organic pace, giving the system time to absorb the growth.
“There’s a huge concern about our school system and about too much growth too quickly,” Kauffman said. “This is just such a huge push to have additional housing that we’re concerned about being able to integrate it in a really positive, successful and sustainable way.”
Affordability & Accessibility
The issue of affordability and accessibility looms large with construction costs rising across the U.S. The biggest lack in housing within the county are for folks making less than 30% to 60% of the Area Median Income (AMI).
“The cost of some of these new units, whether it’s north Mishawaka or out around Notre Dame, is more than I’m paying on a mortgage on a house,” Schalliol said. “I don’t know how a young family or a single person can afford some of these values on their own and still eat, buy medicine, or go out on the weekends. That’s the struggle.”
Cities and towns within the county are working to attract a mix of housing types to meet demand and also create meeting points for people across income levels. Several middle-density products such as townhouses and multi-family units are expected to help the shortage.
“The key thing we are going to struggle with is bringing prices down. That term, affordable housing, how do you make a project affordable?” Schalliol asked. “The county is really trying to figure out how we play in that space. Is it participating in utility extensions, land acquisition or building roads?”
Of the 1,900 units expected to come online in South Bend over the next few years, the city has supported over 1,000 with utilities or other economic development incentives, Bauer said. These projects also feature a mix of affordable and market-rate housing units.
“Infrastructure is the vital building block for growth, and you’ve got to be able to serve these new developments with water and sewer utilities,” Bauer added. “Those aren’t things people think about, but they can be very expensive. So we assist with funding related to utility installation on bigger projects and have a sewer lateral reimbursement program up to $30,000.”
On the county’s part, Schalliol said that in the last couple of years, they had worked to design utility systems that support future projects with minimal disruptions. Before Hedgecroft received the county council’s approval for rezoning, residents voiced concerns about the project putting a strain on the area’s water supply. Schalliol said the county is already working to resolve the issue behind the scenes.
“Our housing prices around here have taken a huge jump because of the industry,” Kauffman said. “Demand is very high, so it’s really skewed the market. Once this is built, I’m hoping that it is in that attainable range for young families.”
Development Projects & Housing Pipeline
With funding from Indianapolis-based Lilly Endowment Inc. for its Western Avenue Transformation Project, the city of South Bend, in partnership with the Housing Authority of South Bend and the Community Foundation of St. Joseph County, is working to bring a modern feel to public housing.
“The goal is to redevelop what had been a public housing block, return the same number of affordable units back to that block,” Bauer said. “And we’re hoping to build a more dense development that can incorporate mixed income apartment units, so market rate and income qualified units being co-located in one development.”
The Riverfront West, a 291-unit development, is expected to play a pivotal role in redevelopment efforts to revive the southern part of downtown South Bend and reconnect it to the rest of the city center, addressing past urban renewal efforts.
“The goal is bringing people into the downtown area, but also seeing development in our historic neighborhood, seeing that infill development,” Bauer said. “Because adding those people back really helps enhance the quality of life for residents of South Bend, and it also improves the ability for our businesses to do business here.”
Apart from the recently approved Hedgcroft development, Schalliol said a couple other housing projects are in the pipeline near New Carlisle. One of the projects is expected to involve annexation to New Carlisle and utility planning.
“It really is an addition to that commercial area just outside of the east of downtown,” Schalliol said. “It could be a neat project, because it really could ultimately start to be that bridge down to Hedgecroft Village over the next several years, as it develops.”
In his state of the city address, Mishawaka Mayor Dave Wood noted that the city was seeing strong residential growth. Both phases of The Mill and GrandView, Spring Luxury Apartments, Stone Leaf Reserve and the city’s partnership with Habitat for Humanity to create new subdivisions have contributed to the momentum.
“By 2027, we will have added 1,300 new homes, a 5% increase since the 2020 census,” Wood said. “That is smart, community-focused growth that strengthens our neighborhoods and secures our future.”
After years of decline and delay, the city is moving forward with redevelopment plans for the 100 Center, formerly the Kamm and Schellinger Brewery. The site will include a mix of shops, restaurants and residences.
“The city is investing in utility upgrades, Riverwalk connections and a new event stage on Kamm Island to support the transformation,” Wood said. “It’s been a long time coming, but momentum is real and the future is bright for one of our city’s most historic sites.”
As the county positions itself as a hub for advanced manufacturing and tech, its ability to house the people fueling that growth will determine whether it sustains the momentum or not. Projects like Hedgecroft Village mark a turning point, forcing communities to confront long-standing tensions between preservation and progress. With over 28,000 new housing units needed in the next decade, how local leaders respond now will shape not only skylines, but the very soul of towns like New Carlisle.