Six reasons to be Excited about the Economic Future of Northwest Indiana
While Northwest Indiana has historically faced more than its fair share of socioeconomic challenges, as we enter the year 2024 there are far more reasons to be optimistic than otherwise about the economic environment and future prosperity of the Region. Here are the six reasons I am most excited about the economic future of Northwest Indiana.
1. Northwest Indiana is becoming an increasingly hot destination for businesses.
In the last decade, Northwest Indiana has added a net of 1,585 new business establishments (+11%). For contrast, over the same period Cook County, Illinois lost a net of 9,091 (-6%) business establishments.1
2. Population is growing faster in Northwest Indiana than nationally
After more than a decade declining population, in the last four years population in Northwest Indiana has grown by 2.8%, significantly outpacing national population growth of 2.0%.2
3. Workers and their families are choosing to remain in Northwest Indiana
Domestic migration trends for Northwest Indiana have dramatically reversed and over the last four years Northwest Indiana has added an average of 1,300 new residents per year as the result of domestic migration. In contrast, over the ten years previous the region had lost 2,280 residents per year through domestic migration.3
4. Incomes are rising in Northwest Indiana far faster than inflation
Despite the high rate of inflation in recent years, the typical worker in Northwest Indiana has seen their real pay grow by 5.8% since 2019 (after controlling for changes in cost of living and inflation). Higher real income, particularly for traditionally lower-paying service industries, drives greater discretionary spending and boosts future economic growth.4
5. Housing construction is accelerating in Northwest Indiana
Over the last four years an average of 2,400 new residential building permits have been issued per year, or 14% more per year than over the previous four years. Much of this new construction has also been higher-end, with finished costs 7% higher on average, after adjusting for inflation in labor and material prices, than over the previous four years.5
6. Demand for housing is outpacing supply in Northwest Indiana
Despite accelerating residential construction, demand for housing is expanding faster than supply. In the last four years, the typical home value in Northwest Indiana has risen 42%, significantly more than 31% rise in home value across the entire Chicago Metropolitan area. In addition, the value of the typical home in Northwest Indiana is 4.3% higher than across the state of Indiana.6
Sources may be found below.
Quarterly Census of Employment & Wages (QCEW), U.S. Bureau of Labors Statistics. Note: Reflects only counties of Lake, Porter and LaPorte.
Annual Community Survey (ACS), U.S. Census Bureau.
County-to-County Migration Flows, U.S. Census Bureau.
Quarterly Census of Employment & Wages (QCEW), U.S. Bureau of Labors Statistics. Note: Reflects only counties of Lake, Porter and LaPorte.
Building Permits Survey (BPS), U.S. Census Bureau.
Zillow Home Value Index ZHVI, Zillow