Key Takeaways

  • Mayor Mueller’s administration has moved to ask South Bend’s Common Council to regulate more than 1,500 short-term rentals
  • AirDNA ranked South Bend the top college-town STR market nationally, with an average home price of $247,000
  • A public meeting has been held but no formal ordinance is filed, leaving the regulatory timeline open

South Bend just earned the title of best college town in the country for short-term rental investment, and city hall immediately responded by launching a push to regulate them.

According to a WVPE report, Mayor James Mueller’s administration announced plans to ask the Common Council to adopt a formal regulatory framework for short-term rentals, citing steady growth in listings since 2020.

The city says the proliferation of Airbnb and VRBO properties has created recurring friction with neighbors, noise complaints, parking disputes, safety incidents, and concerns that the units are artificially driving up property values.

South Bend’s proximity to the University of Notre Dame gives it year-round demand that most vacation markets can’t match. AirDNA ranked it the top college-town STR market in the country, buoyed in part by an average home price of just $247,000.

South Bend short-term rental ordinance framework taking shape

City staff held a public meeting Monday before the Common Council’s Community Investment and Zoning & Annexation committees, where officials outlined what legal tools the city has available and what a potential ordinance might look like.

No formal ordinance has been filed yet, and the city currently counts more than 1,500 short-term rental properties within its limits.

Related: Short-term rental owners push back as Pittsburgh moves closer to stricter regulations

Common Council member Oliver Davis framed the city’s position plainly: “We are a city that is known for our sports teams, known for our graduations. And so we have about over 1,500 people, properties, that are short term rentals. And so we are now looking at what we can do to manage them,” according to WSBT.

The public meeting was a first step, not a final vote. South Bend residents who have dealt with problem rental properties said they welcomed a formal framework, while investors holding units near Notre Dame now face the prospect that any new permitting or licensing requirements could reshape who gets to operate in one of the country’s most-watched STR markets.

The Council committees have not yet set a date for a formal ordinance vote.