Indiana Housing Market Vitality

Market Rank


Indiana metro area house prices are forecasted to underperform the national market over the next twelve months. Currently, the market is tracking the overall U.S. market. Compared to 12-months ago, Indiana’s housing market has strengthened. Current local economic conditions support an estimated 20.1% increase in house prices over the next twelve months. Based on the housing market vitality of the fifteen metro housing markets which comprise it, Indiana’s housing market ranks twenty-third amongst all states and D.C. The three-month outlook is negative.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 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 Hoosier State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

Bloomington, IN Underperforming Negative303
Cincinnati, OH-KY-IN Underperforming Positive163
Columbus, IN Underperforming Negative253
Elkhart-Goshen, IN Underperforming Negative268
Evansville, IN-KY Underperforming Negative334
Fort Wayne, IN Outperforming Positive97
Gary, IN Underperforming Negative270
Indianapolis-Carmel-Anderson, IN Tracking Neutral159
Kokomo, IN Underperforming Negative284
Lafayette-West Lafayette, IN Underperforming Neutral211
Louisville/Jefferson County, KY-IN Underperforming Negative319
Michigan City-La Porte, IN Underperforming Negative220
Muncie, IN Underperforming Negative321
South Bend-Mishawaka, IN-MI Underperforming Positive149
Terre Haute, IN Underperforming Positive197

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 Indiana 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.

Updated November 01, 2022 with data through August 2022