Throughout the United States, the cost of homes is increasing significantly. However, the average price in each state can drastically vary. Some states, such as Indiana, have incredibly cheap houses compared to the rest of the country. But let’s find out why houses are so cheap in Indiana!
Houses in Indiana are so cheap because the state has plenty of space for new development. The housing market isn’t as competitive as in other states because there are enough places to live for old and new residents.
Now, there is a lot to understand about why houses are so cheap in Indiana, including immigration patterns and the housing market. In this article, we are going to go through each of these reasons, so you know exactly why houses in Indiana are so affordable!
How Much Do Houses Cost in Indiana?
Before we dig into the reasons why houses are cheaper in Indiana, you first need to understand the average cost of a house in the state and how it compares to the rest of the country.
Indiana is considered one of the cheapest places to live in the United States. From the general cost of living, to transportation, groceries, health care, and of course, housing, it is very inexpensive to live comfortably in Indiana.
The average single-family home in Indiana currently costs $191,054. To compare, the national average is an incredible $428,700.
So, it’s time to find out why homes in Indiana cost less than half of the average American home.
Why Are Houses So Cheap in Indiana?
There are essentially two reasons why houses are so cheap in Indiana: There is plenty of space for new development, and because of the low immigration rate, there is not a high demand within the housing market.
Now we’re going to dig a little deeper into these reasons, so you actually understand what makes Indiana homes so affordable.
Space for New Development
Indiana is made up of 368 square miles, which is mostly used for farming. Although Indiana is one of the smaller states in the country, there is still plenty of space throughout for development.
With just over 6.7 million residents, technically, there are 181 people per square mile in Indiana.
However, this isn’t really an accurate description of the layout of the state as a large part of the population lives in the city of Indianapolis, and much of the state is non-residential.
But the fact that Indiana, and specifically the outskirts of Indianapolis, are made up of large flat plateaus, building new homes is both easy and cost-efficient.
Although many of Indiana miles are dedicated to farming and privately owned, the sheer amount of available space means that residents don’t have to fight for pre-existing homes. New houses are constantly being developed, which keeps the prices low!
Low Immigration Rate
The second reason why houses are so cheap in Indiana is because of the state’s low immigration rate.
All around the country, US citizens are moving! Domestic immigration is at an all-time high; however, in 2021, Indiana was reported to have “neutral growth.”
That means that just as many people moved to Indiana as those who moved away; therefore, the population is not really increasing with immigration.
Because people are leaving Indiana, and not that many new arrivals are coming, there is still plenty of housing for residents, which keeps the prices low.
While in other states throughout the country, the housing market is becoming incredibly competitive, things are really changing all that much in Indiana right now.
Will Houses in Indiana Get More Expensive?
It’s vital to understand that while houses in Indiana are currently much cheaper than the national average, they have increased over the past year and are expected to grow in the very near future.
It seems that even though the population of Indiana is currently stagnant, reports believe that this is because of the COVID-19 pandemic, and the population is likely to increase significantly over the next few years.
As well, all that undeveloped space will run out at some point (and probably sooner than residents of Indiana would have hoped.)
For these reasons, the prices of Indiana homes will increase. So if you want to buy a house in the state, now is the time!
The Bottom Line
So, why are homes in Indiana so cheap? Well, the ample space and consistent population throughout Indiana have led to its consistently affordable housing compared to the rest of the country.
But hopefully, you now not only understand why homes in Indiana are currently cheap but, more importantly, why they are increasing and will continue to grow in the very near future.