Renting vs Buying Around Notre Dame: What Makes Sense in 2026

The Current State of South Bend's Housing Market

South Bend's real estate landscape has been surprisingly active. According to Redfin's latest market data, the median home price hit $192,000 in late 2025, up nearly 20% year-over-year. That's significant appreciation in a market that many still consider affordable compared to coastal cities.

Meanwhile, Zillow reports the average home value at $170,179, with homes going pending in about 5 days. The takeaway? Properties near campus move fast, especially those within walking distance to the Golden Dome.

What You'll Actually Pay: Rent vs Buy Breakdown

The Rental Reality

The Buying Proposition

Renting Benefits: When It Makes Sense

Let's be honest—renting gets a bad rap, but it's often the smarter choice depending on your circumstances. Here's when renting around Notre Dame shines:

• You're Here Short-Term: If you're a grad student, visiting professor, or professional on a 1-2 year contract, the transaction costs of buying and selling would obliterate any potential gains. Closing costs typically run 2-5% of the purchase price each way.
• Flexibility Is Your Priority: The academic and corporate job markets can be unpredictable. Renting lets you relocate for opportunities without the headache of selling a property or becoming an accidental long-distance landlord.
• You Want Amenities Without the Hassle: Many apartment complexes near campus offer resort-style pools, fitness centers, and shuttle services. When something breaks, you call maintenance—not a plumber at 9 PM on Saturday.
• Your Financial Foundation Isn't Solid Yet: No shame in this—buying requires down payment savings, stable income, and decent credit. If you're still building these up, renting gives you time to get there without forcing a premature purchase.

Homeownership Perks: Building Real Equity

Now for the part that gets people excited. Buying near Notre Dame isn't just about having a place to live—it's about building wealth. Here's why ownership can be powerful:

The Appreciation Angle

South Bend home prices increased by 7% over the past year according to recent market data. While past performance doesn't guarantee future results, the university's continued growth and the city's economic development create a relatively stable demand floor.

The Mortgage Paydown Benefit

Every month you pay rent, that money vanishes into your landlord's pocket. With a mortgage, you're gradually building equity. On a $192,000 loan at 6.49%, roughly $400-500 of your early payments goes toward principal. That's money you'll get back when you sell (assuming stable prices).

Tax Advantages

Mortgage interest and property taxes are typically deductible on your federal return. Depending on your tax situation, this could save you several thousand dollars annually. Your accountant can give you specifics based on your income.

Rental Income Potential

Here's where it gets interesting: the game day rental market around Notre Dame is legendary. Properties within walking distance of the stadium can command premium rates during football weekends. Some owners offset their entire annual mortgage with strategic short-term rentals. (Always check local regulations first—South Bend has specific rules about short-term rentals.)

The Student Housing Factor

Notre Dame students face unique considerations. On-campus housing is convenient but limited for upperclassmen and graduate students. Off-campus options proliferate around campus, from the luxury Varsity View Condominiums (completing summer 2026 with limited rental restrictions) to more modest apartments scattered throughout the neighborhood.

If your parents are considering buying a condo for you to live in during your 4-5 years at Notre Dame, the math can work surprisingly well. They'd build equity instead of sending rent checks, potentially benefit from appreciation, and could sell when you graduate or rent to the next generation of students. According to Redfin data, condos near campus appreciate along with single-family homes, and the rental demand remains consistently strong.

Cost Comparison: The 5-Year Scenario

Let's run the numbers for someone planning to stay in the South Bend area for five years:

Obviously, these numbers include assumptions and your actual experience will vary. But the principle holds: over a 5+ year timeline, buying generally builds more wealth than renting, assuming you can afford the higher monthly costs and down payment.

Long-Term Value: The Real Wealth Builder

The longer you own, the more dramatic the advantage becomes. Someone who bought a home near Notre Dame in 2015 for $140,000 would see it worth around $192,000 today—a gain of roughly $52,000, plus all the principal they've paid down. Meanwhile, someone renting the same period has nothing but rent receipts and memories.

Real estate near universities tends to hold value better during economic downturns because student enrollment remains relatively stable. Notre Dame isn't going anywhere, and neither is the demand for housing around it.

What Makes Sense for You?

Skip the blanket advice—here's how to actually decide:

• Choose renting if: You're staying less than 3-4 years, prioritize flexibility, can't afford a down payment, or simply don't want the responsibility of homeownership right now.
• Choose buying if: You're planning 5+ years in the area, have stable income and savings for a down payment, are comfortable with maintenance responsibilities, and want to build equity rather than pay someone else's mortgage.
• Consider buying even for shorter terms if: You're comfortable being a landlord and can cover the mortgage if you need to rent it out, or if your family wants the property as a long-term investment or game day retreat.

The Bottom Line

The rent vs buy debate around Notre Dame doesn't have a universal answer. It depends on your timeline, finances, lifestyle preferences, and tolerance for risk. What's certain is that South Bend's housing market remains relatively affordable compared to many college towns, creating opportunities for both renters seeking flexibility and buyers building long-term wealth.

The worst decision? Choosing based on what everyone else is doing rather than what actually makes sense for your situation. Take an honest look at your finances, your timeline, and your goals. The right answer will become clear.