LAFAYETTE, Ind. (Inside Indiana Business): A new quarterly report from the Wall Street Journal and Realtor.com shows Indiana has the top three communities designated as emerging housing markets out of 300 locales in the U.S, and a fourth Hoosier community is among the top 20. The index analyzes key housing market data, as well as economic vitality and lifestyle metrics, to surface emerging housing markets that offer a high quality of life and are expected to see future home price appreciation.

Wall Street Journal/Realtor.com Winter 2023 Emerging Housing Markets Index places Lafayette-West Lafayette as the No. 1 emerging market in America. It’s followed by Fort Wayne at No. 2 and Elkhart-Goshen as No. 3. South Bend-Mishawaka comes in at No. 15.

The index identifies markets that will be good areas in which to purchase a home for homeowners and investors. It uses housing market data, real estate taxes, economic vitality, and quality of life metrics to develop the index.

With the housing market nationwide rebalancing as a result of high mortgage rates and climbing home prices, home sales have declined sharply, and inventories have grown.

The Journal says while the emerging housing markets have lower home prices, they also tend to have lower average wages.