Bloomington-Bedford, IN

There is no doubt that the Bloomington-Bedford, IN combined statistical area (CSA) has seen some major changes in the housing market over the past few years. The most notable change has been the sharp increase in home prices. According to Zillow, the median home value in the CSA was $131,600 in December 2016. Just two years later, in December 2018, the median home value had increased to $157,200. That is a 19.4% increase in just two years!

Of course, with home values increasing so rapidly, it is no surprise that there has been an equally sharp increase in rent prices. According to Rent Jungle, the average rent for an apartment in the CSA was $849 per month in December 2016. Just two years later, in December 2018, the average rent had increased to $1,013 per month. That is a 19.6% increase in just two years!

With both home prices and rents increasing at such a rapid pace, it is no wonder that many people are struggling to keep up with the rising costs of living in the CSA. In fact, according to a recent study by Apartment List, 43% of renters and 34% of homeowners are considered “cost-burdened” which means they spend more than 30% of their income on housing costs (including rent/mortgage payments as well as utilities). This is a significant increase from just a few years ago when only 36% of renters and 28% of homeowners were considered cost-burdened.

So what does all this mean for those considering buying or renting a home in the CSA? Well, if you can afford it then now may be a great time to buy as prices are likely only going to continue to rise. However, if you are on a tight budget then you may want to consider renting for now as it will be easier (and cheaper) to find an affordable place to live.