Study: Marshall County must add 2,500 housing units by 2040 to meet growing demand
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Marshall County will need to add 2,485 new housing units by 2040 to keep pace with projected population and workforce growth, according to the Michiana Area Council of Governments’ Regional Housing Study.
The analysis highlights a critical shortfall in affordable and workforce housing, with an average of 124 new units needed each year, about 31% of which must be rental properties. The report underscores a mismatch in housing types, an aging housing stock and affordability concerns, particularly for seniors, young professionals and lower-income households.
Marshall County leaders are rallying around one of the region’s most urgent issues—housing—as they look to fuel economic growth, attract talent and improve the lives of current residents.
The county is drawing on a mix of local innovation and regional collaboration to bring new homes, rehabilitate old ones and create better housing opportunities across income levels.
“(Housing) is essential. It’s essential for our existing population that is struggling to find quality housing. But it’s also essential to the growth of the city; it makes us more attractive,” Plymouth City Attorney Jeff Houin said. “For new businesses and expansion of our existing businesses, they need employees and employees need a place to live, so the only way we can grow is to have housing available.”
Houin speaks about how crucial housing is to Plymouth and Marshall County’s continued economic growth.
The shortage is not just a social issue; it is an economic one. Businesses across Marshall County are struggling to recruit and retain workers, not because the jobs aren’t available, but because employees have nowhere to live. Local leaders believe solving the housing crisis is essential for keeping the region competitive and welcoming to new investment.
While Plymouth is expected to lead future housing development, smaller communities like Bremen, Argos, and Bourbon are also poised for growth.
Regional Collaboration, Local Impact
Marshall County’s housing efforts are part of a broader tri-county strategy. In 2024, the Marshall County Community Foundation (MCCF), in partnership with the community foundations of Elkhart and St. Joseph counties, secured a $20 million grant from Lilly Endowment Inc. to support regional housing development.
Linda Yoder, executive director of MCCF and United Way of Marshall County, said the grant is allowing the region to take bold steps. Among the most significant is the creation of a Community Development Corporation (CDC) for Marshall County, which will help unlock new tools to support housing projects.
“That’s what we hope will be a game changer for Marshall County,” Yoder said. “To help bring resources that have not been available to us before by developing that organization.”
The funding will also launch a land trust and a revolving loan fund. About 70% of the funds are expected to recycle through future housing initiatives, ensuring the impact lasts beyond the five-year Lilly grant period. Regionally, area Habitat for Humanity organizations also received a READI 2.0 grant that is currently awaiting approval from the Indiana Economic Development Corp.
Housing shortage across all categories
A housing gap analysis conducted through the United Way found Marshall County to be currently short about 1,600 housing units. But it also revealed why that gap exists.
About a third of the county’s population is aging in place, meaning they stay in their current homes longer, keeping housing units off the market. Another third—residents aged 30 to 50—are typically first-time homebuyers but high interest rates are locking many out of homeownership. Meanwhile, younger residents are choosing to stay, which is a positive sign for the county’s future but places more pressure on an already tight rental market.
“We were a little surprised at that,” Yoder said. “We knew that there were strains, that there were challenges in our community, but understanding that was eye-opening.”
The consequences are playing out in real time. Families double up. Some stay in motels for months. In Plymouth and other towns, hotels are effectively serving as rural shelters.
“Homelessness looks different in our rural communities—couch surfing, multiple families living under one roof, not by choice,” Yoder said. “Transitional housing in hotels is not inexpensive, but it is an option for folks that have limited ability to find any other type of housing available at the moment.”
Recent Housing Projects
Plymouth has taken several steps to address the need. Centennial Crossing, a mixed-use development on the north side, includes a variety of housing types—single-family homes, apartments and senior living units. Riverside Commons offers affordable units through a tax-credit model. Water Street Town Homes, a 14-unit market-rate rental development, is expected to open by the end of the year.
Another group, led by Garden Court, is seeking funding for a project that will blend permanent supportive housing with tax credit units.
Houin said while large-scale developments may be easier in urban areas, Plymouth is looking for ways to attract developers to smaller, infill projects within the city’s neighborhoods. But even that has its hurdles.
“Anybody involved in the construction trades is really busy,” Houin said. “Most developers are not interested in these smaller projects because they can go to South Bend and take a large project and build 100 houses, whereas we don’t have space for 100 infill houses.”
Plymouth is also enforcing housing codes more strictly and updating its zoning laws to encourage new development. Houin said volunteer-led committees have played a big role in gathering data, connecting developers with property owners and helping the city stretch its limited staffing resources.
Building Momentum
Gary Neidig, a longtime leader in Marshall County’s economic development efforts, said the county’s housing strategy is a sign of how far the community has come in coordinating its planning. The One Marshall County Regional Planning Team—made up of representatives from every town in the county—has five pillars, with housing now a top priority.
“This kind of collaboration is really going to be essential if we want to not just sustain our economy, but grow it,” Neidig said in an email to Inside INdiana Business
Developers are being welcomed to the table, and the hope is that new tools like the land trust, revolving loan fund and CDC can reduce the risk and cost that have kept builders away from smaller rural projects in the past.
Even as housing stock is being built and repaired, thanks in part to the county’s land bank, leaders emphasized that there is no one-size-fits-all solution for Marshall County. Houin said the city is looking at creating a more robust infill housing policy like the one the city of South Bend implemented in 2022.
From government officials, nonprofit leaders to grassroots volunteers, Marshall County’s housing response reflects a shared understanding that economic development is not sustainable without housing.
“We’re focused on seeing what we can do to help support and address these challenges,” Yoder said. “It will take all of us working together to find multiple ways to address the needs.”
As regional projects heat up, including the Amazon Web Services data center and the GM/Samsung EV battery plant in New Carlisle, Marshall County knows it must be ready for growth. That means building homes and planning for the long haul.
“Under our current mayor, Robert Listenberger, one of the things that has been a real focus is planning for the future,” Houin said. “There are a lot of things happening and a lot of projects that are at different stages. But we’re excited about the future opportunities and starting to show the results of all of these plans.”