Our previous blog post discussed some of the factors that are expected to impact Indiana's real estate market in 2022. Today, we’re diving into some additional trends that will affect Indiana’s real estate market this year, including increased rental demand, population growth, and the emergence of a more business-friendly economy.
While 2021's real estate trends, such as the frenzied home buying activity, unprecedented offers, higher mortgage lending, and increased mortgage refinancing aren't just unique to Indiana, there's a great deal of confidence that these trends could accelerate further in 2022. Forecasts for the Indiana housing market show promising signs of positive net growth in 2022 as the state continues to be seen as one of the country's most sought-after property markets.
Read part one of our 2022 Indiana real estate market predictions here.
4. High Demand in the Rental Market
The Hoosier state is experiencing high demand for rental properties, with vacancy rates below 5 percent. That's good news for anyone looking to invest in rentals. The Indiana real estate market is well-positioned for growth in 2022, which explains why many out-of-state investors are putting it at the top of their wish list.
Take a moment and think about it; Indiana is currently brimming with opportunities, properties in Indiana are still affordable, the ceiling for expansion is quite high, and the prospects for good potential returns are even higher. Real estate forecasters predict the demand for rentals in this hot market is likely to increase, with tenants willing to pay more for properties they deem desirable and new construction in Indiana continuing to provide new opportunities for rentals and sales. This makes now the most ideal time to invest in real estate in Indiana.
5. Rise in Population
According to new estimates from the U.S. Census Bureau, Indiana's population continues to grow steadily. The Hoosier State is now ranked in the top 10 for population growth, with a total increase of over 91,500 people since 2010. The unemployment rate is just 3.5%, and the state’s median household income is about $52,314. Similarly, a publication by the Indiana Business Research Center at Indiana University's Kelley School of Business projects that Indiana's population will grow from 6.61 to 7.27 million residents by 2050, with 60 percent of this growth taking place by 2030.
The industries fueling Indiana's expansion as a hotbed of opportunities include manufacturing, agriculture, tech, and logistics. The high inbound migration of people relocating from California, Florida, and New York to escape the higher cost of living in those states means the demand for single-family homes in Indiana is bound to continue to increase in 2022 and in the coming years.
6. Business Friendly Economy
Indiana has also been on a hot streak in terms of housing market growth and is fast becoming one of the top real estate markets to watch in 2022. All thanks to its thriving business community and a strong economy. Indianapolis, in particular, is renowned for its low taxes and plenty of opportunities, and the city has been named one of the best places for business by Forbes and Kiplinger's, in addition to other publications.
Whether you're looking to start a new business in Indiana or relocate an existing one, Indiana should be at the top of your list. Thanks to its pro-business climate and diverse economy, the state is poised for continued success in the years to come. According to the Indiana Economic Development Corporation (IEDC), the Hoosier State is expected to experience an increase in GDP of 2.5% this year. This would make Indiana one of the top 10 states in regards to GDP growth and a critical player in the national economy. The IEDC cites some of the causes for this projected growth, including expansions in critical industries such as healthcare and advanced manufacturing. Business leaders and economists are encouraged by these findings and believe that Indiana is well-positioned for steady economic expansion for years to come.
Final Thoughts
Over the past year, the Indiana real estate market has displayed marked vitality and emerged as one of the top housing markets to watch in 2022. Equally impressive are some of the Indiana real estate market trends we've witnessed in the last quarter of 2021, which we believe will extend into 2022, such as the surge in housing market activity and the increased demand for rentals. Right now is an excellent time for you to invest in Indiana property while prices are still affordable or sell your home in Indiana before others start taking advantage of the ideal market conditions and list theirs!
If you're unsure where to start looking for homes for sale in Indiana, or whether now is really the right time to list your Indiana home, our team of experienced Indiana REALTOR®s at CENTURY 21 Scheetz can point you in the right direction. Browse agents by office location or simply contact us now for more information on buying or selling real estate in Indiana.
