By Scarlet Thalman
BCR Correspondent
NILES, MI – The South Bend–Mishawaka region was recently ranked the No. 1 housing market in the United States in the Spring 2026 rankings from Realtor.com and The Wall Street Journal, bringing national attention to the Michiana housing market and its impact on nearby Southwest Michigan communities.
According to Laurice Srichinda, head of mortgage lending at Everwise Credit Union, the South Bend–Mishawaka market earned the ranking because of a combination of affordability, strong demand, economic momentum and quality of life. Srichinda said the region remains significantly more affordable than many larger Midwest metro areas, even as home prices have steadily increased in recent years. She added that the area’s diverse economic base, growing employer presence, higher education access and collaborative regional growth efforts have helped create long-term market stability and confidence.
Srichinda said affordability continues to be one of the region’s biggest competitive advantages compared to larger metro areas such as Chicago and Indianapolis. She said buyers can often get significantly more home for their money in South Bend–Mishawaka and surrounding communities, making the region attractive to first-time buyers, young families and remote workers looking to maximize affordability and quality of life.
While the South Bend market has gained national recognition, nearby communities in Southwest Michigan continue facing inventory shortages and slowing sales activity. According to the Southwestern Michigan Association of REALTORS® March 2026 housing report, first-quarter home sales in Southwest Michigan fell 19% compared to the same period in 2025. The number of homes sold in March dropped 23%, declining from 226 homes sold in March 2025 to 173 homes sold this year. Housing inventory also declined 18% year-over-year, leaving a 3.8-month housing supply across Allegan, Berrien, Cass and parts of Van Buren counties.
Srichinda said many of the same housing pressures seen in South Bend are also affecting Southwest Michigan, although she noted the markets are connected but not identical. She said Southwest Michigan has experienced slower sales activity and more mixed price movement in 2026, while still dealing with limited inventory and affordability concerns. She added that Southwest Michigan communities attract buyers for different reasons, including proximity to Lake Michigan, outdoor recreation, second-home interest and walkable downtowns such as St. Joseph.
According to Srichinda, some buyers who begin their searches in South Bend or Mishawaka eventually expand their searches into Southwest Michigan when looking for a different setting, more seasonal appeal or lake access. She said crossover demand tends to be strongest in communities with recognizable downtowns, shoreline access and established neighborhoods, although she emphasized there is not one single relocation trend driving the market.
Housing inventory remains one of the region’s biggest long-term challenges. Srichinda explained that even when sales activity slows because of interest rates or economic uncertainty, there still are not enough homes available to fully meet buyer demand. She noted that the imbalance is especially noticeable in entry-level and mid-range housing, where competition remains strongest.
Mortgage rates have also continued influencing the market. According to the Southwestern Michigan Association of REALTORS® report, Freddie Mac’s average 30-year mortgage rate rose to 6.38% in March, up from 5.98% in February. The report also found Southwest Michigan’s median selling price dipped 2% to $285,000 in March 2026, while the average selling price fell 5% to $400,156.
Srichinda said remote and hybrid work have also expanded the range of options some buyers are willing to consider. She said buyers are increasingly prioritizing parks, walkability, local events, outdoor recreation and access to natural amenities when deciding where to live. Looking ahead, Srichinda said South Bend–Mishawaka’s national ranking could bring additional attention and investment to the broader region, including nearby Southwest Michigan communities, as long as employers, investment and population growth continue throughout the area.