Indianas housing market saw unprecedented activity in the early 2020s.
A combination of rock-bottom mortgage rates, scarce inventory, and strong demand sent prices soaring.
Bidding wars became common as the average sale price in 2021 exceeded listing prices amid fierce competition.
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This changing of the guard means new preferences are influencing what and where high earners buy.
As a result, high-earning buyers set their sights on spacious suburbs and even rural locales.
This marks a change from the prior decade.
Millennial Housing Preferences
However, that trend was limited compared to larger metros.
In short, the pandemic accelerated an existing lean toward suburbs.
Geographic Flexibility
Another notable 2020s trend is high earners casting wider nets geographically.
During 20202021, vacation towns and suburbs heated up nationally as remote-work buyers flocked to less dense areas.
Indiana benefited from this pattern.
The pandemic fundamentally changed what dream home means for this segment.
Remote work and stay-at-home lifestyles put a premium on space and amenities.
This reflects how high-income families shifted vacation dollars into upgrading their residences for recreation (the staycation effect).
Comparing to Previous Decade
In the 20102019 period, by contrast, amenity wish-lists were comparatively modest.
But there wasnt the same universal need for multiple offices or extreme self-sufficiency at home.
Now the focus has shifted inward to day-to-day livability.
In 20202025, quality-of-life considerations largely drove the market for high earners.
The experience of the pandemic prompted many to reassess their housing needs and priorities.
In Indiana, this translated to families moving closer to relatives or creating multi-generational homes for support.
This family-centric motive is a notable cultural factor in the Midwest.
Purely financial or investment motives took a backseat to lifestyle in the early 2020s.
Economic Factors
Still, economic factors played a role.
Many rushed to lock in sub-3% rates on forever homes.
Pre-Pandemic Motivations
In contrast, 20102019 motivations were more traditional.
Coming out of the Great Recession, high-end buyers were cautious in the early 2010s.
buying properties at a value or moving up as the market was rebounding.
Lifestyle factors certainly mattered (good schools, shorter commutes to high-paying jobs in city centers, etc.
Generational Differences
Generational turnover also underpins the shift in motivations.
If not, no sale even if its a good investment on paper.
Now even downsizers often want some private outdoor space.
Outdoor amenities (pools, patios, gardens) went from nice-to-have to essential for many in this bracket.
Now, even wealthy buyers want connectivity: trails, coffee shops, and community events.
Buyer Behavior and Timeline
The 20202025 period was characterized by urgency.
High earners accelerated their buying plans some purchased homes earlier than planned or bought second homes as retreats.
There was less external impetus to change ones housing situation in a hurry.
ft. home on a spacious lot in Indiana for the price of a cramped condo in a coastal city.
Economic Climate Changes
Economic factors also play a significant role.
These swings affected buyer behavior.
But they also had to navigate the 2022 cooldown when borrowing became more expensive.
Many wealthier buyers simply adjusted by making larger down payments or paying cash to avoid high interest costs.
Generational Impacts
Finally, generational shifts underpin much of the change.
Their decisions impact supply: when boomers hold off on downsizing, the inventory of high-end homes remains tight.
This dynamic was less of an issue in the 2010s when more boomers were still moving regularly.
What hasnt changed is the fundamental appeal of homeownership for those who can afford it.
