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November 4th, 2019 by Marco Santarelli
This article has been written to reflect the recent changes in the Fort Wayne housing market and to find out about real estate investment opportunities in 2020. Let’s learn a bit about Fort Wayne city before explaining why Fort Wayne real estate could be a good choice for investors as well as home buyers in 2020.
Fort Wayne, Indiana is a fairly large city in the former Rust Belt of the American Midwest. Unlike other cities in the area, it never experienced the crash in employment levels, though it has shifted its economy to remain strong. Fort Wayne is the second largest city in Indiana, surpassed only by Indianapolis.
Yet Fort Wayne isn’t a suburb of Indianapolis. Fort Wayne is a roughly two hour drive from Indianapolis, Indiana. Fort Wayne is home to roughly a quarter million people. The population has risen an average of 0.6 percent annually since 2010. The job growth in Fort Wayne has also contributed to in-migration.
The Fort Wayne metro area is almost twice this large. The Fort Wayne housing market includes more than four hundred thousand people when you include the suburbs. The combined statistical area including small towns 50 miles out includes more than six hundred thousand people.
However, size isn’t reason enough to make a Fort Wayne real estate investment in 2020. Let’s take a deep look at the some of the most important Fort Wayne housing market trends to come to a conclusion.
Fort Wayne Real Estate Market Forecast 2020
The real estate data from Zillow shows that the Fort Wayne real estate market is very hot at the moment. To further expound on the current market conditions in Fort Wayne, here are some of most important statistics for buyers and investors.
The median home value in Fort Wayne is $138,000 on Zillow. Fort Wayne home values have gone up 9.5% over the past year and their Fort Wayne real estate market prediction is that the prices will rise 5.4% within the next year.
The median list price per square foot in Fort Wayne is $98, which is lower than the Fort Wayne Metro average of $99. The median price of homes currently listed in Fort Wayne is $174,900.
The median rent price in Fort Wayne is $795, which is lower than the Fort Wayne Metro median of $810.
This is the Fort Wayne, IN real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 5.4% till Aug 2020.
Fort Wayne Housing Market Forecast 2020 – 2021
Here is a short and crisp Fort Wayne housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Fort Wayne is 76% and it is predicting a positive trend.
The LittleBigHomes.com estimates that the probability for rising home prices in Fort Wayne is 76% during this period. If this price forecast is correct, the Fort Wayne home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Fort Wayne, Indiana Real Estate Market Forecast.
Fort Wayne Real Estate Market Trends
We shall discuss some of the most recent real estate trends in the Fort Wayne area. In July 2019, Fort Wayne was ranked No. 1 in the list of hottest real estate markets, by Realtor.com. That’s up from No. 12 in July 2018.
The views of Fort Wayne homes listed on their website increased by nearly three times compared to typical properties in all the other markets.
There are 1,103 homes for sale in Fort Wayne, IN on Realtor.com. 137 of which were newly listed within the last week. The Fort Wayne home prices range from $885 to $3.3M. Additionally, there are 223 Fort Wayne rentals for sale, and their rent price ranges from $271 to $2.7K per month.
According to their statistics, in September 2019 the Fort Wayne housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale. In other words, the sellers in Fort Wayne have held good leverage in negotiations.
Ideally a buyer would prefer a sale to asking price ratio that’s closer to 90% . A seller would always prefer scenarios which can yield a ratio of 100% or higher.
In September 2019, the median list price of homes in Fort Wayne, IN was $169.9K, trending up 2.1% year-over-year. The median listing price per square foot was $90.
The median sale price was $163.3K. On average, homes in Fort Wayne, IN sell after 42 days on the market. The trend for median days on market in Fort Wayne, IN has gone down since last month, and slightly down since last year.
Currently, Trulia has 1,226 resale and new homes for sale in Fort Wayne, IN, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median list price in Fort Wayne, Indiana is $ 199,000 on Movoto.com. According to their data, the median list price in Fort Wayne was less than 1% change from September to October. Fort Wayne’s home resale inventories is 746, which increased 4 percent since September 2019.
The median list price per square foot in Fort Wayne is $87. In September 2019 it was $88. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.
Fort Wayne, IN Single Family Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
U.S. single-family rental market has seen steady rent increases between 2010 and 2019. According to CoreLogic’s latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, it shows a national rent increase of 3% in April 2019, as compared to 2.8% in April 2018.
As per the real estate company called Neigborhoodscout.com, the median house price in Fort Wayne, IN is just $121,552, which indicates that home prices in Fort Wayne are well below the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Fort Wayne, accounting for 69.74% of the city’s housing units. Three and four bedroom single-family detached homes are the most common housing units in Fort Wayne.
In 2016, more than one-half of renter households lived in single-family homes or in buildings with two, three, or four units, relatively unchanged since 2010 (2016 American Community Survey 1-year data).
Other types of housing that are prevalent in Fort Wayne include large apartment complexes, duplexes, homes converted to apartments and a few mobile homes.
In the past few years the demand for apartments in downtown Fort Wayne and stronger economic conditions have resulted in the highest level of multifamily construction in the Fort Wayne Housing Market Area since 2005.
Fort Wayne has a mixture of owners and renters, with 60.90% owning and 39.10% renting. This shows that Fort Wayne isn’t among the cities where Renters are the majority.
After the great recession of 2008, renting a home has increased exponentially across the nation. There are currently over 136.57 million housing units in the U.S. In 2018, the total number of homeowner households hit an all-time high of 76.2 million. 36.6% of households rent their homes and 64.4% buy their homes (2018 U.S. Census Bureau).
The Fort Wayne Housing Market Area in northeast Indiana is coterminous with the Fort Wayne, IN Metropolitan Statistical Area, which consists of Allen, Wells, and Whitley Counties.
Most of the recent development in the Fort Wayne Housing Market Area is in the city of Fort Wayne, the largest city in the HMA and the second largest in Indiana, after Indianapolis.
Currently, there are 788 single family homes for sale in Fort Wayne, IN on Zillow. Additionally, there are 163 single family homes for rent in Fort Wayne, IN.
Under potential listings, there are 0 Foreclosed and 109 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Fort Wayne, IN Foreclosures And Bank Owned Homes Statistics
As per the Fort Wayne foreclosure data by Zillow, The percent of delinquent mortgages in Fort Wayne is 1.0%, which is lower than the national value of 1.1%. So, when you’t be able to find many foreclosure deals in the Fort Wayne housing market.
There are currently 75 properties in Fort Wayne, IN that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,335.
In August 2019, the number of properties that received a foreclosure filing in Fort Wayne, IN was 364% higher than the previous month and 47% lower than the same time last year.
Best Neighborhoods to Invest in Fort Wayne Rental Real Estate
If you are looking to invest in the Fort Wayne rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Fort Wayne rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Fort Wayne real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Fort Wayne rental property should be low. The neighborhoods in Fort Wayne must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 22 elementary schools, 22 middle schools, 14 high schools and 47 private & charter schools in Fort Wayne, Indiana. Also, there are 183 neighborhoods in Fort Wayne.
Some of the best neighborhoods in or around Fort Wayne, Indiana are Northside, Arlington Park and North Anthony. Lincoln Village has a median listing price of $228.6K, making it the most expensive neighborhood. Oxford is the most affordable neighborhood in Fort Wayne, with a median listing price of $37.9K.
Here are the best neighborhoods to invest in Fort Wayne rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Is Fort Wayne a Good Place to Invest in Real Estate?
Now that you know where Fort Wayne is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Fort Wayne rental real estate?
Many real estate investors have asked themselves if buying a rental property in Fort Wayne is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Fort Wayne housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Fort Wayne but we have collected ten evidence based positive things for those who are keen to invest in the Fort Wayne investment properties.
Investing in Fort Wayne rental properties will fetch you good returns in the long term as the home prices in Fort Wayne have been trending up year-over-year.
Let’s take a look at the number of positive things going on in the Fort Wayne real estate market which can help investors who are keen to buy an investment property in this city.
We’ll focus on real reasons to invest in the Fort Wayne real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Strong Economy of Fort Wayne
The Fort Wayne real estate market didn’t suffer the same manufacturing collapse as other Rust Belt states because GM maintained their manufacturing plant there. It has added a thousand jobs since the 1980s.
However, since 2010, relative stability in the manufacturing sector combined with continued expansion of the education and health services sector have contributed to the economic recovery in the aftermath of the previous recession.
Defense contractors like BAE and Raytheon have large manufacturing facilities in Fort Wayne. The Fort Wayne city benefits from logistics, too. It is within 300 miles of major cities like Chicago, Cincinnati, Lexington, and Louisville.
This led many companies to base warehouses and shipping operations in the city. The economy is bolstered by the city’s role as a regional services provider. That’s why it is home to a 2.5 billion dollar healthcare industry.
Unemployment in the area is currently nearly a full percentage point below the national average. This stable and slowly growing job market attracts people to the Fort Wayne area.
2. Demographic Momentum
One reason to consider Fort Wayne real estate investment is the demographic momentum in the city. The average age of the U.S. is around 40 years old. Fort Wayne has an average age of 35.
Over a quarter of residents are under 18, and around a third of households have children in them. The city isn’t experiencing a youth drain.
Furthermore, the strong job market means many kids raised here remain here to work. This gives the Fort Wayne housing market long term stability and potential for growth if all other things remain the same.
3. The Student Market
Another factor that contributes to the lower median age of residents are the many colleges in the Fort Wayne housing market. Indiana University is one. The Indiana Institute of Technology is another.
The Purdue University campus in the city is another, though it is not as well-known as the flagship school. Then there is the University of Saint Francis, and there are multiple seminaries in the city.
This creates a large student population in the city without the Fort Wayne real estate market being dependent on the reputation and popularity of a particular institution.
You can have a diverse Fort Wayne real estate investment catering exclusively to students. Rents and property values are then dependent on the distance to campus, while students’ ability to pay rent is almost independent of the local economy.
4. The Potential for Greater Growth
The Fort Wayne area’s many good engineering and tech schools combined with the large defense sector make it a hub for high tech startups. And many are choosing to study and start businesses here because they can afford to live in a house with a yard instead of a box in someone’s living room as may be the case in San Francisco.
This gives the Fort Wayne real estate market the potential for incredibly rapid growth if something takes off. This is one reason among many that the Fort Wayne area is seeing 5 percent annual population growth.
The expectation of this and long-term planning in general are leading to a deliberate development of a denser downtown area.
5. The Relatively Low Tax Burden
It isn’t what you earn but what you keep that matters. And this is why a Fort Wayne real estate investment is superior to one in “hotter” regional markets like Chicago. For example, Indiana’s overall tax rate is close to the national average.
For comparison, Illinois and Ohio are nearly tied for the tenth highest tax burden in the country. One point in favor of the Fort Wayne housing market is the combination of relatively affordable real estate and the state’s low property tax rate.
The average property tax rate in Indiana is 0.8 percent, while the national average is roughly 1.1 percent.
6. The Affordable Real Estate in Fort Wayne
The Fort Wayne housing market is affordable by both national and regional standards. The median home price in Indiana is around 180,000 dollars.
That’s below the national average of roughly 220K. However, the Fort Wayne housing market beats this. The average home in the Fort Wayne area is roughly 140,000 dollars.
7. The Rapid Real Estate Appreciation in Fort Wayne
The relative lack of inventory of new homes or affordable homes is driving up the cost of existing homes in the Fort Wayne real estate market. In 2019, home prices increased roughly 10 percent, well above the area’s historic appreciation rate of 3 percent a year.
Home values are expected to rise more than 5 percent in 2020. Much of this is due to people in the region moving to Fort Wayne for the affordable real estate, good jobs and family-friendly communities.
Conversely, this creates a seller’s market and makes it harder to find good Fort Wayne real estate investment properties.
8. The Impact of Building Construction Trends
International trade disputes drive up the cost of building supplies, while the construction industry suffers a shortage of skilled labor. Builders have responded by focusing on higher profit upscale homes.
This does add new inventory to the Fort Wayne real estate market. However, it drives up the prices for affordable Fort Wayne homes due to limited inventory.
This is causing significant price inflation for lower cost Fort Wayne real estate investment properties as well as raising their rental rates.
9. The Relatively Landlord Friendly Climate
Indiana is relatively friendly to landlords despite being in a part of the country that tends to favor renters. If someone breaches the lease or fails to pay the rent, you can file a ten day notice to pay or be evicted.
Once that limit is reached, courts evict people fairly quickly. A month to month tenant in a Fort Wayne real estate investment property can have their lease terminated immediately if they intentionally damage property.
Nor is there is a limit on security deposits. The state used to be more relaxed but put a 45 day time frame on returning deposits.
10. The Strong Return on Investment
The median rent in the Fort Wayne real estate market is 750 dollars a month. However, that includes studio apartments. The average rental rate in the city including apartments and homes is around a thousand dollars a month.
The average rent for a two bedroom house is 800 a month. The typical 3 bedroom home is a little over a thousand dollars a month. A four bedroom house commands more than 1100 dollars a month.
Fort Wayne Real Estate Investment 2020
Maybe you have done a bit of real estate investing in Fort Wayne, Indiana but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Fort Wayne real estate investment opportunity would be a key to your success. If you invest wisely in Fort Wayne rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Fort Wayne rental properties are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Fort Wayne you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Fort Wayne, IN. Fort Wayne is a mid-sized city that has achieved a high standard of living, full employment and family-friendly communities.
This has led to steady population growth and strong property appreciation without becoming overheated. And these are good reasons to invest here over larger and hotter real estate markets.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process.
They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Fort Wayne real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
The other hot market to invest in real estate is Greenville, South Carolina. Greenville isn’t the largest, hottest or most expensive real estate market in the state.
However, it offers a slowly growing population, strong job market, diversified economy that guarantees growth and an easy point of entry for investors. Greenville, SC was ranked among best markets for seasonal investment in real estate in 2016.
According to HomeUnion, winter is the perfect time to acquire single family rental properties in markets like Jacksonville, Tampa and Greenville.
Another fairly good market to choose for real estate investment is Pasadena, CA. A Pasadena real estate investment may cost more than the national or even LA regional average, but it has a number of points in its favor.
Property values will likely remain strong, since the Pasadena area is seen as better than LA. It is less hostile to landlords and has long-term trends that guarantee strong future appreciation.
The median rent in the Pasadena housing market is 1500 dollars a month, though a single family home will rent for much more. And those who want to rent a single family home face more competition since roughly half of homes are owned, not rented.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
About Fort Wayne https://en.wikipedia.org/wiki/Fort_Wayne,_Indiana
Low tax burden https://taxfoundation.org/state-and-local-individual-income-tax-collections-capita/ https://taxfoundation.org/state/indiana/
Affordable real estate https://realestate.usnews.com/places/indiana/fort-wayne
Building trends https://www.journalgazette.net/news/local/20190102/sellers-market-for-housing-in-19 https://wpta21.com/news/top-stories/2019/08/14/nations-hottest-housing-market-fort-wayne/
Landlord friendly https://learn.roofstock.com/blog/landlord-friendly-states http://www.rentersinsurance.com/2012/03/8-states-where-rental-laws-favor-landlords/
Student market https://realestate.usnews.com/places/indiana/fort-wayne/jobs
Potential for greater growth https://www.news-sentinel.com/opinion/2019/04/27/news-sentinel-editorial-population-growth-is-good-for-region/ https://www.ibrc.indiana.edu/ibr/2018/outlook/fortwayne.html
Market Prices, Trends & Forecasts https://www.zillow.com/fort-wayne-in/home-values https://www.realtor.com/realestateandhomes-search/Fort-Wayne_IN/overview https://www.movoto.com/fort-wayne-in/market-trends https://www.huduser.gov/portal/publications/pdf/FortWayneIN-comp.pdf https://www.realtytrac.com/statsandtrends/in/allen-county/fort-wayne/ https://www.wane.com/news/local-news/ranking-fort-wayne-had-nations-hottest-real-estate-market-in-july
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