With the rise in manufacturing contributing to the economic recovery in Indiana, job growth may push housing demand up in Indianapolis. Southern Indiana is becoming a hotbed of manufacturing activity, especially with plastics and auto production picking up, Area Development reported. As manufacturers invest more in facility expansions, increasing production and corporate research and development, they could boost their hiring activity and attract more skilled workers to the state. Investors who aim to buy Indianapolis investment properties should partner with an investment firm to acquire properties in desirable areas and start cash flow.
With easy access to several major roadways, Indianapolis is appealing to manufacturing companies that aim to reduce shipment times.
“We are good at making things and distributing them,” said Greg Wathen, president and CEO of the Economic Development Coalition of Southwest Indiana, according to Area Development. “And we’re getting better at it and more sophisticated at it.”
Wathan said southern Indiana has been a big producer of auto and transportation equipment, including minivans and trucks. To supply auto manufacturers with parts, there are also aluminum and plastics plants in the area, which could strengthen the auto supply chain in the region and potentially attract more automakers.
As the manufacturing sector centered in Indianapolis continues to see steady gains in investment and employment, more people might come to the area looking to rent or buy homes, The Indianapolis Star reported. The housing market in Indianapolis is seeing an uptick in demand, with houses disappearing quickly. Analysts say the rise in the housing market is due more demand from buyers looking to upgrade to a larger home or move into a smaller one, rather than first-time home buyers.
Increase in housing demand in Indianapolis tightening supply
Although the housing market is strengthening in Indianapolis, housing experts are anticipating there will be a shortage in supply in the near future. Some buyers are unable to buy the house they want in the price range they have set due to the tight supply. With younger buyers unable to compete in the housing market that is heating up, millennials are increasingly choosing to rent.
“That generation thinks and works differently,” said Tony Barbee, Pulte’s Midwest Area president, “and maybe doesn’t have that aspiration to own a home,” according to the Indy Star.
A shortage in housing could be filled by developers, but it could take some time to begin building in emerging neighborhoods.
As housing demand continues to grow, investors who choose to buy Indianapolis investment properties should partner with a real estate investment firm that knows the ins and outs of the area.