Indiana’s 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.
High-income households (earning $250,000–$500,000) were often at the forefront of this frenzy, leveraging their financial power to win bids. These buyers include a growing cohort of older millennials now in their prime homebuying years, as well as some newcomers drawn to Indiana’s stable economy, low crime rates, and low taxation.
In fact, Indiana added roughly 340,000 new residents in the last decade, attracted by its affordability and quality of life. This influx and generational turnover have reshaped the high-end buyer profile – today’s affluent Hoosier homebuyers are as likely to be tech-savvy remote workers in their 30s and 40s as they are mid-career executives or retirees.
The demographic shift is notable: millennials made up 38% of homebuyers in 2020, a share that has only grown. By contrast, in 2010 the market was dominated by Gen X and baby boomers, as most millennials were just entering adulthood. This changing of the guard means new preferences are influencing what and where high earners buy.
Preferred Locations: From Urban Centers to Suburban & Rural Retreats
A clear shift toward suburban living emerged in 2020–2025. The COVID-19 pandemic and remote-work revolution enabled professionals to live in areas with lower housing costs while maintaining access to higher-paying jobs, one Indiana broker noted.
As a result, high-earning buyers set their sights on spacious suburbs and even rural locales. Remote work trends and shifting lifestyle preferences will continue driving demand for homes in suburban and rural areas, an Indianapolis realty firm predicted for 2025, noting that buyers seeking larger properties and strong community amenities are targeting places like Carmel, Fishers, Westfield, Lafayette and Bloomington.
Suburban Appeal and Amenities
These areas offer a blend of affordability and lifestyle perks – good schools, parks, and newer homes – that appeal to well-paid professionals not tied to a downtown office. This marks a change from the prior decade.
In 2010–2019, many high-income Hoosiers still favored suburban living (Indiana has long been a suburban-centric state), but there was also interest in urban conveniences. Indianapolis’s downtown and close-in neighborhoods saw some revitalization in the 2010s, with a trickle of affluent buyers opting for condos or historic homes near cultural amenities.
Millennial Housing Preferences
However, that trend was limited compared to larger metros. By late 2010s, as millennials aged, even they showed a preference for space: more than half of millennials were looking in suburban areas by 2020, with only 14% interested in urban city homes.
With many millennials starting to settle down and most now working from home, the city life isn’t as appealing as it once was, a homebuilder observed. In short, the pandemic accelerated an existing lean toward suburbs.
Geographic Flexibility
Another notable 2020s trend is high earners casting wider nets geographically. Freed from daily commutes, some buyers ventured farther from Indianapolis or even out to Indiana’s smaller towns and scenic areas.
Local agents report affluent out-of-state buyers – for instance, Chicagoland professionals – relocating to Indiana’s lakefront or countryside for a lower cost of living. During 2020–2021, vacation towns and suburbs heated up nationally as remote-work buyers flocked to less dense areas. Indiana benefited from this pattern.
In the 2010s, such relocations were rarer; job location was a firmer anchor, and long-distance telecommuting was uncommon. Now, a high-earning family might live in Zionsville or Brown County’s rolling hills while working for a Chicago or Silicon Valley firm – a lifestyle shift virtually unseen in the previous decade.
Bigger Homes and New Amenities: The Quest for Space and Comfort
With more flexibility in location, high-income Hoosiers in 2020–2025 have been upsizing and prioritizing homes that fit a new lifestyle. 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.
As one luxury real estate report found, the allowances of remote work have led to a renewed emphasis on the amenities and features of homes — from extra square footage and access to nature to swimming pools and air-purification systems — that make it more comfortable to spend days and weeks sheltered in place.
Home Office Requirements
In Indiana, high-end buyers increasingly seek larger homes with dedicated home offices, finished basements or bonus rooms for gyms and theatres, and ample outdoor living areas. Features like gourmet kitchens (for all that at-home cooking), high-speed fiber internet, and smart-home technology have moved from perks to expectations in this bracket.
Surge in Backyard Amenities
One striking trend was surging demand for private swimming pools and other resort-like amenities. They want pools because they want to be at home, said an Indianapolis-area pool installer inundated with orders in 2021. Backyard pool installations jumped so much that local companies were booked out until 2023 to keep up with the pandemic-fueled rush.
This reflects how high-income families shifted vacation dollars into upgrading their residences for recreation (the “staycation” effect). Similarly, sales of homes with large yards, outdoor kitchens, or waterfront access spiked as well-to-do buyers sought personal oasis properties when public venues were limited.
Comparing to Previous Decade
In the 2010–2019 period, by contrast, amenity wish-lists were comparatively modest. Open-concept layouts, updated kitchens/baths with luxury finishes, and maybe a bonus media room were popular among high earners pre-2020. But there wasn’t the same universal need for multiple offices or extreme self-sufficiency at home.
A decade ago, a high-income buyer might have prioritized proximity to a golf course or an impressive two-story foyer to entertain guests. Now the focus has shifted inward to day-to-day livability.
Home Design Trends
Even home design data bear this out: over the past decade, single-story homes (often larger ranch designs) gained popularity as buyers sought ease and flexible space, while two-story homes slightly declined.
Builders note that today’s luxury clients often request two home offices (for both partners), Zoom-friendly acoustics and lighting, and health features like filtered ventilation – features rarely mentioned in 2019.
Neighborhood and Community Context
Another shift is the importance of community and neighborhood amenities relative to the house itself. Planners in central Indiana observed that home buyers place greater emphasis on neighborhood amenities and development type more than on the actual home.
Walkable communities, parks, trails, and restaurants nearby have become bigger selling points, even for affluent buyers traditionally assumed to prioritize the property first. This trend was emerging in late 2010s and solidified after 2020, as people valued their immediate surroundings during lockdowns.
In suburban Indy hotspots like Carmel, new upscale developments now incorporate mixed-use town centers so residents can enjoy shops and dining without a long drive. A growing market segment prefers to live in mixed-use communities, a housing study noted, underscoring that even wealthy buyers want a sense of place and convenience, not just a big house in isolation.
Ten years ago, many high-end buyers were content with secluded cul-de-sacs; today, they often seek a balance – breathing room plus connectivity.
Motivations: Lifestyle, Investment and Generational Shifts
The motivations behind home purchases have also evolved between the two periods. In 2020–2025, 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.
Focus on Family and Well-being
Real estate professionals describe an affluent buyer mentality focused on family, health, and security. According to a luxury market analysis, ideas about wealth itself also shifted as the affluent set sights on ‘intangible luxuries,’ like family, health, safety, security, and space.
In Indiana, this translated to families moving closer to relatives or creating multi-generational homes for support. Indeed, surveys found Indiana seniors (often the parents of high-income Gen Xers and boomers) moved in with family at double the national rate during recent years – suggesting many buyers in the $250k+ income tier were motivated to purchase larger or more accommodating homes to bring loved ones under one roof or nearby.
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. For one, historically low interest rates in 2020–21 gave high earners incredible purchasing power, often enabling them to upgrade to pricier homes with relatively low monthly payments. Many rushed to lock in sub-3% rates on forever homes.
Conversely, as rates climbed above 7% by 2022, some of this cohort shifted to paying cash or holding off for a deal – but overall, their activity remained strong relative to other buyers, given their resources.
Another factor was inflation and asset growth: even during the turbulent pandemic economy, wealthier households saw stock portfolios and savings swell by late 2020 due to market rebounds and limited spending on travel. Housing became both a haven and a hedge – a tangible asset in an inflationary environment, and one that clearly was rising in value fast (Indiana home values jumped 42% from mid-2020 to late 2023 on average).
Thus, high-income buyers in this period felt pressure that if they didn’t buy now, they might be priced out later or miss building equity during a boom.
Pre-Pandemic Motivations
In contrast, 2010–2019 motivations were more traditional. Coming out of the Great Recession, high-end buyers were cautious in the early 2010s. As the recovery took hold, their confidence returned, but the mindset was often to seize low prices and low rates for investment reasons – e.g. 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.), but there wasn’t the same widespread urgency to upgrade for fear of lockdowns or to accommodate remote working.
Changing Commute Priorities
Commute convenience was actually a top priority pre-2020; a short drive to the office or easy access to highways often guided where high earners bought homes. By 2025, that calculus had changed for many, who now willingly exchange commute time for a more ideal home.
A mid-2021 survey of buyers confirmed this flip: people were willing to swap short commute time for affordability and more space since they weren’t going into work daily.
Generational Differences
Generational turnover also underpins the shift in motivations. Younger high-income buyers (Millennials and older Gen Z) tend to prioritize experiences and flexibility, which influences their housing choices. They want homes that support their hobbies (gardening, fitness, remote entrepreneurship) and reflect values like sustainability.
Older generations in the 2010s might have been more motivated by prestige or long-term retirement planning (e.g., buy my dream home to live out my days). Now we see more of the live for today mindset: buyers ask if a home will make their daily life happier, healthier, and more convenient. If not, no sale – even if it’s a good investment on paper.
This is a distinct shift from a decade ago, when even affluent buyers more often talked about resale value and neighborhood cachet. Today’s high earners, especially the younger cohort, are changing the way folks buy houses and what they expect from them, as one real estate observer put it. They expect flexibility (for example, rooms that can adapt to offices or in-law suites) and community – and they’re willing to pay top dollar for it.
Comparing 2010–2019 and 2020–2025: Key Shifts in Preferences and Behavior
When we compare the two periods, several clear shifts in homebuying preferences and behaviors emerge:
Location Priorities
High-income buyers have moved from a somewhat balanced city/suburb split to an overwhelming suburb (and exurb) orientation. Suburbs were always popular in Indiana, but remote work made them virtually a default in the 2020s, even for younger professionals.
In 2010s, being closer to work or urban amenities had more weight for some; by 2025, space and lifestyle amenities trump proximity to downtown. Rural and “second-tier” locations gained favor in the recent period, a trend that was minimal in the prior decade.
Home Size and Type
The preferred home size for affluent buyers has generally increased or at least remained large, but how that space is used changed. The 2010s saw many large homes built, but often with formal dining rooms, great rooms, and perhaps an extra media room.
The 2020s large home is designed differently – with multiple offices, more bedrooms (or flex rooms), and integrated outdoor spaces. There’s more interest in single-story layouts or at least a first-floor primary suite for long-term adaptability, reflecting both aging buyers and convenience.
Lot sizes became more valued post-2020 as well, whereas in the 2010s some high-end developments were trending toward smaller lots (to reduce maintenance) or attached townhomes for empty-nesters. Now even downsizers often want some private outdoor space.
Amenities and Features
Both eras valued high-quality finishes and curb appeal, but the 2020–2025 buyer has a longer checklist. Features like home offices, high-speed internet, home gyms, dedicated Zoom spaces, air and water purification systems, and backup generators rose to prominence – items rarely mentioned pre-pandemic.
Outdoor amenities (pools, patios, gardens) went from nice-to-have to essential for many in this bracket. In 2010–2019, buyers might have prioritized luxury upgrades like granite countertops, custom cabinetry, or a spa-like master bath – still desired today, but now accompanied by demands for functional features that support working and relaxing at home full-time.
Community & Neighborhood
As noted, today’s high-income buyers care about the community context – they often seek walkability, green space, and mixed-use convenience. This marks a subtle but important change from a decade ago, when many luxury subdivisions were insular and car-dependent by design.
Now, even wealthy buyers want connectivity: trails, coffee shops, and community events. This could be partly a generational preference (millennials typically enjoy more social engagement) and partly the result of the pandemic teaching the value of a supportive neighborhood.
Buyer Behavior and Timeline
The 2020–2025 period was characterized by urgency. High earners accelerated their buying plans – some purchased homes earlier than planned or bought second homes as retreats. Realtors in Indiana noted that clients who used to carefully plan a move years in advance were suddenly diving in as soon as they could, spurred by low interest rates or fear of missing out on preferred homes.
In contrast, 2010–2019 was more stable; buyers often stuck to predictable life-stage moves (upsizing when kids arrived, relocating for a job, downsizing at retirement). There was less external impetus to change one’s housing situation in a hurry.
That all changed in 2020 when home became the center of work, school, and leisure – prompting even very affluent individuals to rethink “Do I have enough space and comfort if I’m here 24/7?” The result: an era of what some analysts called “pandemic moves,” as people sought houses that met new criteria.
Broader Economic and Social Factors Shaping the Trends
These shifting trends in Indiana’s high-income housing market did not happen in isolation – they reflect broader economic forces, remote work influences, and generational shifts.
The Remote Work Revolution
The role of remote work is paramount: it has fundamentally reshaped housing choices. By 2025, roughly 28% of American work hours were done from home, about 4× the pre-pandemic rate, according to one analysis.
This seismic change freed many high earners (who are more likely to have telework-friendly jobs) to reconsider where they live. Indiana, with its relatively low cost of living and high quality of life, became a beneficiary of this trend as professionals realized they could have a 5000 sq. ft. home on a spacious lot in Indiana for the price of a cramped condo in a coastal city.
Remote work also encouraged the dual-home lifestyle for the affluent – some maintained a pied-à-terre in a big city and a primary residence in Indiana, or vice versa, something far less common before.
Economic Climate Changes
Economic factors also play a significant role. The 2010–2019 decade was one of recovery and expansion after the housing crash, with historically low but gradually rising interest rates and relatively low inflation.
The 2020–2025 period, in contrast, saw extreme swings: a sharp 2020 recession followed by aggressive stimulus, ultra-low rates, then a surge of inflation that led to rapidly rising mortgage rates by 2022–2023. These swings affected buyer behavior.
High-income households typically fared well – they kept their jobs (often remotely), benefited from stock market gains, and could absorb higher home prices. But they also had to navigate the 2022 cooldown when borrowing became more expensive.
Indiana’s market mirrored national patterns: after a two-year run of double-digit price gains, rising rates in 2022 cooled off once white-hot buyer demand, though not enough to reverse price growth entirely. Many wealthier buyers simply adjusted by making larger down payments or paying cash to avoid high interest costs.
In effect, their purchasing shifted from being limited by monthly payment (when rates were low) to being limited by overall price and personal liquidity (when rates spiked).
Generational Impacts
Finally, generational shifts underpin much of the change. As millennials became the largest homebuying group, their preferences – tech integration, emphasis on “experiences over things,” environmental consciousness, and desire for authenticity – have started reflecting in the housing market.
For example, there’s anecdotal evidence that younger high earners in Indiana have more interest in renovating older homes in walkable neighborhoods (trading some size for character and location), whereas the prior generation at that income level often went straight for new construction in a subdivision.
At the same time, baby boomers in Indiana are aging and some are cashing out of large homes (or staying put longer with aging-friendly renovations). 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. Now, with many boomers comfortable in place (especially if they refinanced at 3% rates), the market for luxury homes faces a logjam, further driving competition among younger buyers for the limited listings.
Conclusion: The Evolving Concept of “Home”
In sum, Indiana’s high-income homebuying trends have shifted notably from the 2010s to the mid-2020s. What hasn’t changed is the fundamental appeal of homeownership for those who can afford it. Buying a home has remained a key goal and milestone – if anything, the pandemic reinforced the importance of “home” as a safe haven and multifunctional space.
The past five years put a spotlight on homes as more than investments; they became the center of work, schooling, and leisure, especially for affluent households that could exercise choice in the matter. As a result, buyers between $250K and $500K income in Indiana today are more discerning and lifestyle-driven.
They’re choosing communities that fit their desired way of living, and homes that can adapt to uncertain times – whether that means an extra room for an office, a bigger yard for the kids and dog, or simply a quieter life away from the bustle.
These shifts line up with broader national patterns influenced by remote work and generational change, but they also carry a local flavor: the Hoosier values of family and space are as evident as ever, just expressed now in new ways through the housing choices of Indiana’s most well-to-do buyers.
Sources
- Indiana Business Research Center – Indiana’s positive housing market outlook for 2022.
- Indiana Business Research Center – Affordability concerns weigh on Indiana housing market outlook for 2023.
- Lockstep Realty – Predictions for the 2025 Real Estate Market in Indiana.
- Allen Edwin Homes – Millennial Home Buying Myths Debunked.
- Indianapolis Metropolitan Planning Organization – Plainfield Housing Analysis (Central Indiana Housing Study).
- Business Insider – Coldwell Banker Luxury Report – Unmoored by remote work, the wealthy streamed into 6 under-the-radar cities.
- WISH-TV/CNN – Pandemic sparks high demand and delays for backyard pools.
- Quadwalls (Chuck Vander Stelt) – Indiana Real Estate Market: Prices & Trends 2023.
- Indiana Business Research Center – Indiana housing market outlook for 2024.
- SpareFoot.com – New Data Reveals the Shrinking Average Home Size (2010–2023).
