Indiana Home Trends: 4 Property Types Losing Value, 4 Set To Grow
The Hoosier State’s real estate market is shifting in surprising ways. As economic forces, population changes, and buyer preferences evolve, certain property types are gaining momentum while others are losing their appeal.
Understanding these trends can help you make smarter decisions whether you’re buying, selling, or investing in Indiana’s housing market.
1. Older McMansions Facing Value Decline
Remember those massive suburban homes built in the 1990s and early 2000s? They’re falling out of favor with today’s buyers. High maintenance costs and outdated layouts make these properties less attractive compared to newer, more efficient homes.
Energy bills for these behemoths can be shocking! Many feature formal dining rooms and living spaces that don’t match how families live today. Young families and empty nesters alike are seeking more practical, manageable spaces rather than sprawling floor plans.
2. Rural Properties Without Internet Access
The pandemic transformed how we work and live, making high-speed internet essential. Rural Indiana properties lacking reliable broadband are seeing significant value drops as buyers prioritize connectivity above almost everything else.
Remote work has become permanent for many Hoosiers. Families need strong internet for school, entertainment, and daily life. Even beautiful countryside views can’t overcome the dealbreaker of poor connectivity in today’s market.
3. Homes Near Industrial Developments
Factory expansions across Indiana have created jobs but damaged nearby property values. Noise, traffic, and environmental concerns make these neighborhoods less desirable despite their affordability.
Air quality worries top the list for many potential buyers. Young families especially avoid these areas despite lower price points. Even longtime residents find their home equity shrinking as industrial footprints grow around established neighborhoods.
4. Homes With Outdated Energy Features
Rising utility costs are making energy-inefficient homes harder to sell across Indiana. Properties with old furnaces, poor insulation, or single-pane windows face longer market times and lower offers.
Buyers calculate monthly costs beyond just mortgage payments. They’re increasingly walking away from homes needing expensive energy upgrades. Even in hot markets, these properties often require significant price reductions to attract interest.
5. Small-Scale Hobby Farms Growing In Demand
The dream of growing your own food while enjoying country living is driving values up for properties with 2-10 acres. These “mini farms” offer the perfect balance of space without overwhelming maintenance.
Young families love the opportunity to raise chickens and grow gardens. Many buyers seek properties already set up with small barns, fencing, or outbuildings. The pandemic accelerated this trend as people prioritize self-sufficiency and outdoor living space.
6. Walkable Neighborhood Homes
Houses within strolling distance of coffee shops, restaurants, and parks are commanding premium prices across Indiana cities. Walkability has become a top priority for buyers of all ages, not just millennials.
Gas prices and environmental concerns make car-optional living increasingly attractive. Communities like Carmel, Fishers, and parts of Indianapolis with pedestrian-friendly developments are seeing property values climb steadily. The convenience factor outweighs slightly smaller lot sizes for many buyers.
7. Multi-Generational Living Spaces
Homes designed for extended families are experiencing a serious value boost. Properties with in-law suites, finished basements with separate entrances, or detached guest houses command significant premiums in today’s market.
Aging parents moving in with adult children has become commonplace. College graduates returning home need privacy while saving money. Smart sellers are highlighting these flexible living arrangements in listings, knowing they appeal to today’s family dynamics.
8. Properties With Home Office Potential
Dedicated work-from-home spaces have moved from “nice-to-have” to “must-have” status. Homes with flexible rooms easily converted to offices or existing dedicated workspaces are outperforming comparable properties lacking these features.
Zoom-friendly backgrounds and good natural lighting sell houses faster than ever before. Properties with high-speed internet infrastructure already in place particularly shine. Even smaller homes with cleverly designed office nooks are benefiting from this pandemic-accelerated trend.
