Exploring The Allure of Northwest Indiana

Northwest Indiana, or “Da Region” as locals lovingly call it, is a dynamic slice of the Hoosier State. It’s tucked next to Lake Michigan and a stone’s throw from Chicago. A blend of industry, peaceful natural areas, and a cultural kaleidoscope are just a few perks of living in Northwest Indiana. Add on a lower cost of living than next-door Chicago, and it’s easy to see why people are moving here. 

This energetic region is Indiana’s second-biggest city metro region after Indianapolis. Here’s what you can expect when looking to live in Northwest Indiana.

The Attraction of Northwest Indiana

The Lake Michigan shoreline’s unparalleled beauty meets the Chicago metro’s casual sophistication. It’s hard to believe an oasis of azure waters and sand dunes awaits under an hour from downtown’s River North, but it’s true. As a Northwest Indiana resident, you can live in this beautiful paradise every day with less traffic, safer neighborhoods, and an equally robust culture as Chicago. And if you do want Chicago’s entertainment attractions, it’s a convenient trip into the city.

The 45 miles of southern Lake Michigan shores are on the Indiana side of the border. The seascapes are impressive, shaped over eons by glaciation. The communities that sprung up here are equally diverse. Over the decades, waves of immigrants came to work at the manufacturing plants, as did Chicago residents who sought a more relaxed pace of life.

Today, the greater region is a powerhouse with a $35 billion economy. Indiana has a robust and stable economy and an entrepreneur-friendly business environment. As a region, a strong infrastructure ties the Northwest into one of the US’ most important cities. A network of rail, highway, and ports serving businesses and people makes it a thriving place to work and live.

Cost of Living

It’s amazing how driving over state lines dramatically changes your cost of living. Compare Gary, Indiana, a lakeside town minutes from the Illinois state line, to downtown Chicago.

That housing difference is impressive, but think about the quality of life between the two. You can have more space, a bigger home, and access to the great outdoors living in Northwest Indiana. And it’s still considered part of the greater Chicago metro! Move further away into towns like Hobart, Valparaiso, and La Porte, and you’ll find even more cost savings.

Layer on how much more attractive the tax situation is between Indiana and Illinois. For property taxes, Illinois ranked no. 50 out of 51 (including the District of Columbia). Only New Jersey residents paid more as a percentage of home value for property taxes. In contrast, Indiana ranked no. 22. To put a dollar figure on it, it’s the difference between paying $2,121.46 and $9,006.07.

On the surface, Illinois has the better sales tax rate at 6.25%. But that doesn’t figure in the sales taxes municipalities and counties charge. Buy something in the Chicago City limits, and you’ll pay an extra 10.25%.

Individual income taxes also run higher in Illinois, 4.95% to 3.23%. Are you worried about possibly paying taxes twice if you’re a commuter? Fortunately, you can receive a credit for your Illinois income tax on your Indiana tax return, ensuring no double payments.

Buying in Northwest Indiana

One of Northwest Indiana’s attractions as a place to buy a home is its real estate market. Find diverse properties, such as tranquil views of Lake Michigan. Imagine watching the turquoise waters on a summer’s day or the churning waves as a storm rolls in from your waterfront home. Or, buy a few acres of land and build a dream home in the more rural countryside.

In February 2024, the region’s median sale price was $229,900, the same as the prior month. Prices are 2% higher than the prior year. Looking at the market trends, prices typically increase in the summer months before falling into the winter season. Available inventory and sales activity also increase during the warmer months. See the most recent homes for sale in Northwest Indiana.

Where to Live in Northwest Indiana

So, with all this ground to cover, where should you live in Northwest Indiana? The truth is there are many great cities and towns, and each will have its character and charms. A local real estate agent can help you pinpoint which ones have the lifestyle you’re looking for.

Here are the highlights of a few of the Northwest’s more populated communities:

Gary

Gary is Indiana’s ninth-largest city. It’s known for its steel mills and manufacturing industries. Like other manufacturing-focused towns, it’s seen its share of economic struggles as the US economy has shifted. Its other claim? Pop icon Michael Jackson was born in Gary. Living here places you lakeside, beside Illinois, and next to Indiana Dunes State Park.

Valparaiso

Valparaiso, lovingly known as “Valpo” to locals, has a fun and youthful home. And it should, as the home of Valparaiso University. Architecturally, it’s pretty, with the classic Americana look downtown. For things to do, the calendar stays packed. Valpos love a good street fair. Check out the annual Popcorn Festival, inspired by town legend Orville Redenbacher–yes, that one in your grocery store aisle. Additionally, Valpo has an impressive parks and trails system.

Crown Point

Crown Point, known as the “Marriage Mill,” celebrates its historic downtown square and the iconic Lake County Courthouse. Locals fondly refer to the stately 1800s building as the “Grand Old Lady.” This city always has something going on. It attracts a lot of visitors because of its fairgrounds. Visitors appreciate all the dining and shopping choices, but Crown Point families treasure its excellent schools. Life here includes easy access to Chicago’s metropolitan benefits.

Hammond

Hammond is a pivotal hub within the Northwest Indiana region. Its deep-rooted industrial heritage contrasts with the 330-acre recreation area, championship golfing, and Wolf Lake. Nationally ranked Purdue University adds an academic culture and zest for innovation. Hammond straddles the Illinois border and is about 25 minutes from downtown Chicago.

Merrillville

Suburban Merrillville is the Northwest’s family-friendly entertainment locale. Its standout attraction, Deep River Waterpark, packs in water slides, a lazy river, and pools that promise an exhilarating day out for families. Two more beloved local establishments are right across the street from each other. The Albanese Candy Factory is a paradise for those with a sweet tooth, while Chicagoland Popcorn has an extraordinary selection of the sweet and savory. Add a long list of places to eat, dine, and shop, and it’s easy to see the allure of living in Merrillville.

St. John Township

St. John Township exemplifies quiet, suburban living. The community if often celebrated for its commitment to high-quality living standards. Named one of the “top 50 best small towns in the nation,” its residents benefit from top-rated local schools and meticulously maintained parks. An extensive trail system connects the quiet neighborhoods so on those nicer days, you can get around on foot. It’s also famous for its Shrine of Christ Passion.

Michigan City

On the easternmost side of the region, Michigan City stands out as a fun, lakeside community. Framed by Indiana Dunes State Park and the lake, events and festivals cater to every interest during the high season. The adrenaline-pumping Great Lakes Grand Prix draws visitors to watch high-speed boats race across the lake. Art fans come for the Lakefront Art Festival. Fine artists and craftspeople showcase their talent with Lake Michigan’s shimmering waters as a backdrop. Anglers test their skills in competitive fishing tournaments, while music fans unwind at outdoor summer concerts. To round out a busy event schedule, Michigan City has arts, dining, shopping, and more.

These are just seven of the communities in Northwest Indiana. Talk to a real estate agent to get an even deeper look at where you can live.

Key Attractions in Northwest Indiana

Looking for things to do? Part of the appeal is the access to the outdoors, gaming venues, and entertainment–before you even factor in how close you live to Chicago. The bucket list for living in Northwest Indiana:

• Indiana Dunes National Park: A unique park in the Great Lakes chain. Over 15,000 acres of majestic dunes and serene forests awe visitors. More than 50 miles of trails provide picturesque views of Lake Michigan.
• Lake Michigan: With its sprawling beaches and spectacular sunsets, you can’t miss Lake Michigan. Go sailing and boating in the summer, try your hand at fishing, or relax shoreside on those balmy summer days.
• Albanese Candy Factory: This beloved candy factory is known worldwide for its gummy bears. Satisfy your sweet tooth with a tour.
• Carmelite Shrine: A place of reflection and spirituality, the monks of the Carmelite Fathers Shrine in Munster invite visitors each Sunday to explore the peaceful grounds. Learn about the shrine’s historical significance in Northwest Indiana.
• Kankakee Sands: Bison have been re-introduced to this landscape. A trip here shows what the Northwest looked like before colonization. Witness the restoration of the 10,000 prairie acres and its native wildlife.
• Pierogi Fest: Sink your teeth into a delightful cultural celebration filled with the best pierogis you’ll ever have. Over 300,000 people pack into Downtown Whiting for a weekend of live music, dancing, beer, and pierogis!
• Craft Beer: Savor the innovative creations from over 17 craft breweries and microbreweries in the region. The local South Shore Brewery Trail highlights the Northwest’s growing brew culture.

Living in Northwest Indiana

In essence, Northwest Indiana is a destination that has it all. Live near fascinating historical sites, unique nature preserves, and a thriving industrial sector. Add to it communities small enough to feel close-knit and incredible access to Chicago, one of the nation’s most exciting cities. “Da Region” invites you to experience its unique blend of American life.