While home prices increased nationally in 2022, Indiana remains relatively affordable compared to large coastal metros. This cost advantage has continued making Indiana an increasingly popular destination for out-of-state homebuyers seeking more value.

According to the Indiana Association of Realtors (2023), 31% of home purchases in the state were by out-of-state buyers in 2022, up from 29% in 2021. Top origination markets were Illinois, Ohio, and California. Redfin data shows the Indiana cities seeing the biggest influxes include Indianapolis, Fort Wayne, and South Bend (2023).

Home prices in Indiana are still well below major metros; the current median home value in California is $883,000 compared to $250,000 in Indiana (Zillow, 2023). Rents are also lower, with Indiana apartment rents roughly half the cost of rents in many California and Northeast cities (Apartment List, 2023).

Indiana’s relative affordability is coupled with a strong job market and quality of life. The state saw net in-migration of nearly 25,000 residents in 2022, another large influx (Indiana University, 2023). Analysts expect demand from out-of-state buyers to persist as remote work continues.

For Indiana residents, the ongoing influx of buyers from more expensive areas is increasing competition and moderating, but not eliminating, the state’s affordability advantages. Housing costs are rising faster than incomes in many Indiana metros.

References

Apartment List. (2023). Rent Data. Apartment List.

Indiana Association of Realtors. (2023). 2022 Annual Market Report. IAR.

Indiana University. (2023). Census Data Shows Indiana Net Migration Continued in 2022. IU Newsroom.

Redfin. (2023). Redfin Migration Report. Redfin.

Zillow. (2023). Home Value Index. Zillow.