Indianapolis area starter homes still more affordable despite rising prices

• Attracting first-timers is one reason homebuilders are churning out smaller, less expensive houses.

By the numbers: Indianapolis-area house shoppers in August needed an annual income of $55,454, up nearly 4% from a year earlier, to afford the region's typical starter home — which costs $174,000, per Redfin.

• The region's median household income is $85,955 this year, researchers estimate.
• Nationwide, the average income needed was $76,995, and the average starter home costs $250,000.

State of play: Across the country, younger people struggling with high housing costs are moving back in with their parents to make ends meet at a higher rate.

• Among U.S. millennials who don't own a home, 44% say income is the top barrier to buying, per a Bankrate study. And 43% say they can't afford the down payment and closing costs.
• Meanwhile, the relative affordability of Indianapolis homes has made it one of the most accessible markets for young buyers to enter.

Yes, but: Prices here are still higher than they used to be.

• Indiana home prices saw an 8% increase since last summer, the 15th-highest increase in the nation, according to the Federal Housing Finance Agency.
• In the Indianapolis metro, home prices climbed 5.2% during that same period.

What we're watching: Many 2024 voters say home affordability is a top concern.

• Former President Trump and Vice President Kamala Harris have different proposals for tackling it.
• Indiana's gubernatorial candidates have both acknowledged the state's affordable housing problem, in addition to property tax spikes, but haven't released specific plans for how to address the issue.