Marc Jaffe is an Indianapolis investor focused on the commercial real estate market, and a frequent contributor for area business news. In the following article Marc Jaffe explores the investment outlook for Indiana as a whole and makes a solid case for why the state is a great place for government agencies, developers, and more to put their dollars.
Indiana is often overlooked in favor of its larger neighbor, Illinois – home to Chicago – but Indiana has a lot to offer investors, especially as the state continues to grow over the next few years says Marc Jaffe of Indianapolis. Thanks to a steadily rising employment rate and a growing population in urban areas, Indiana looks set to become a possible hotspot for both real estate and infrastructure investments.
Marc Jaffe of Indianapolis explains that although Indiana is traditionally a manufacturing state, its economy has done well to recover from the supply shortages of the pandemic. Marc Jaffe now takes a look at some of the other drivers that are influencing Indiana’s growth and new position as a potential investment hub.
Marc Jaffe Says Look at the Fast-Growing Employment
Indiana’s unemployment rate has been on a steady decline since the beginning of the pandemic, and it now sits at a healthy 2.2%, which is well below the national average of 3.6%. What’s more, Marc Jaffe of Indianapolis says the state’s job market has been growing at a faster rate than the national average.
When we take a look at the macro level, this becomes more evident. Indianapolis alone has a future growth rate of 37.5%, compared to a national average of just 33.5%. In the last year alone, Indiana has added nearly 450,000 jobs each month, leading to a growth rate of 2.9%, which is slightly higher than the national average of 2%.
As the job market continues to grow, Marc Jaffe of Indianapolis says it will help support the state’s population growth and, as more people move into Indiana, it will create more demand for housing and other services, providing opportunities for investors in these sectors.
Rising Population
Indianapolis investor Marc Jaffe reports that the state’s population has been growing steadily for the last few years and is projected to continue doing so. As of 2019, the state’s population was growing at a rate of 0.5% each year. This might not seem like much, but compared to the national average of 0.4%, it’s clear that Indiana is outpacing the rest of the country.
What’s more, Marc Jaffe of Indianapolis says the state’s capital Indianapolis is growing at a faster rate of around 1.35% every year. As more people move into the city, it will surely grow larger and bring new investment into the state—both in real estate and infrastructure. This investment is further propelled by the Biden Administration’s new infrastructure plan, which will inject nearly 30% more funds into local road projects.
What to Invest in in Indiana
Marc Jaffe of Indianapolis says thanks to the state’s strong job market and growing population, there are a few sectors that look promising for investors.
The first is the real estate market. As more people move into the state, there will be more demand for housing. This demand will help push up prices and create opportunities for investors in the rental market. What’s more, with the Biden Administration’s infrastructure plan, there will be new opportunities for investors in the construction and development sector as well.
Indianapolis investor Marc Jaffe says the second sector that looks promising is healthcare. With the aging population and the state’s growing population, there will be more demand for home and healthcare services. This sector is also set to benefit from the Biden Administration’s infrastructure plan as it includes funds for upgrading healthcare facilities.
The third sector that looks promising is the transportation sector. The government in Indianapolis has already allocated tens of millions of dollars to new construction projects to revitalize the state’s transportation services. This sector looks set to benefit from the state’s growing manufacturing economy as more businesses will require transportation services to move their goods.
Where to Look Besides Indianapolis
While Indianapolis is the state capital and the largest city in Indiana, there are plenty of other places to invest in the state. Once the poster child for urban decay, Gary, Indiana has recently turned itself around after losing nearly half of its population in the mid-20th century. Today, Marc Jaffe says it’s the second-largest city in Indiana and is enjoying a 2% population growth rate.
Another place to invest in Indiana is South Bend. South Bend is located in the northern part of the state and is the fourth-largest city. The city is home to the University of Notre Dame, which has a large student population and is well known throughout the country. South Bend has a growing medical and healthcare industry that will benefit from the state’s growing population.
Final Thoughts
Investment in Indiana has the potential to be very profitable says Marc Jaffe of Indianapolis. The state’s strong job market, growing population, and recent infrastructure investment suggest that the state’s economy will continue to grow in the coming years. This growth will create opportunities for investors in a variety of sectors, especially in real estate, healthcare, and transportation.
