March 2020

Indiana Housing Market Vitality



Indiana metro area house prices are forecasted to outperform the national market. Current local conditions support an estimated 9.3% increase in the next twelve months. Indiana’s housing market vitality, based on the fifteen metro housing markets which comprise it, is stronger than that of the overall U.S. and currently ranks the state as eleventh in the nation. Recent changes in local conditions suggest the possibility of improvement in short-term performance.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on future house prices. A value of 100 corresponds to conditions supporting current prices; values less than 100 correspond to a dampening effect; and values greater than 100 indicate a positive effect on house prices.  A housing market vitality value can be interpreted as a forecasted growth rate. Hence, a reading of 105.8 can be interpreted as a forecasted 5.8% annualized increase in house prices.

Indiana Metro Housing Markets

Indiana is comprised of fifteen metro housing markets that account for nearly 78% of the state’s population. The markets are unique in their demographics and local economies and exhibit trends that are distinct from the national or state narrative. Each metro market presents its own unique opportunity.

Bloomington, IN Outperform 18
Cincinnati, OH-KY-IN Outperform 159
Columbus, IN Outperform 185
Elkhart-Goshen, IN Outperform 86
Evansville, IN-KY Outperform 179
Fort Wayne, IN Outperform 97
Gary, IN Outperform 133
Indianapolis-Carmel-Anderson, IN Outperform 151
Kokomo, IN Outperform 211
Lafayette-West Lafayette, IN Outperform 157
Louisville/Jefferson County, KY-IN Outperform 59
Michigan City-La Porte, IN Outperform 170
Muncie, IN Outperform 166
South Bend-Mishawaka, IN-MI Outperform 208
Terre Haute, IN Track 315

Industry Specialization

Indiana’s state economy is specialized in Manufacturing and Other svcs. Mining, Information, and Pro Bus svcs industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.


Compared to the U.S., there is a higher incidence of poverty amongst Hoosier State residents and they have less purchasing power. There are more high school graduates and a smaller proportion of the population is college educated. Indiana’s population is comparatively less diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.