Why Northwest Indiana Rocks!
Recently, I had some friends contact me about some "hot" markets other places in the country. They showed me numbers and graphs, sent me out all the info that proved their point, but yet I am still happier than ever in what some people call the Armpit of America, northwest Indiana. Located just outside of Chicago, we are the forgotten suburbs of the city. And yet, even through all of that, I am still perfectly content investing here, and I actively encourage others to come here, as well! Let me tell you why....
Northwest Indiana, affectionately called NWI by the people here, is one of the best markets in America, but not for the conventional reasons. We are located just across the state line from Chicago, and NWI makes up a good part of Chicagoland’s population of 9.8 million people.
We have a wide range of jobs. While we used to rely on the steel industry, the job market is now incredibly diverse. We are not reliant on any particular industry, compared to a city like Houston, with its dependence on the oil industry. Geographically, Chicagoland and more specifically NWI has become a crossroads of sorts. All cross-country traffic is routed south of Lake Michigan, right through the heart of this area.
Despite being right outside Chicago, notoriously one of the highest-taxed locations in the country, our property taxes are low due to Indiana’s tax code. We have all the benefits of being a suburb of Chicago without all the taxes that usually would come with it.
Rent value vs ARV is higher, compared to comparable homes other places in the country. For example, a $100,000 house here can get &1,200-$1,300 in rent. Compare this to the national average, where a $100,000 house should get between $800 and $850.
Due to being in a separate state, rent and housing prices in Illinois are considerable higher 10 minutes from comparable houses in Northwest Indiana. If the economy goes through another downturn, this actually helps rent in this area. In 2008, we saw typical monthly rents in Merrillville go from a range of $900-$1000 to $1200-$1250 for a typical $120,000 house. In south Hammond, the range went from $800-$850 to $900-$950 for a typical $80,000 house. In fact, the range now for south Hammond is $1,000 to $1,100.
With such a close proximity to downtown Chicago, just 30 minutes away on the expressway, it is easy to pull from their Chicago renter pool. Many NWI residents work downtown, commuting every day back and forth to the city. They benefit from the lower cost of living here, while still being near the benefits of Chicago.
Despite all of this, Northwest Indiana is a relatively boring market. We do not experience drastic price swings, drastic cuts, and sudden surges. We fluctuate very slowly compared to many markets in America. In 2008, it was reported that the average home price dropped 18% from the peak in 2006. In Lake County, NWI’s largest county, the average price went from $169,000 to $159,000, a drop of just 6%. It’s boring, but in a good way!
In short, Northwest Indiana is one of the safest markets to invest in!