1031 Exchange in Lafayette West Lafayette MSA
The Lafayette-West Lafayette MSA offers exceptional 1031 exchange opportunities as the #7 Emerging Housing Market nationally, anchored by Purdue University's $8.2 billion economic impact, featuring dual market dynamics with West Lafayette premium pricing ($369K-$450K) and Lafayette moderate pricing ($233K-$315K), competitive property taxes (0.64-0.73% vs. 1.02% national), and university-driven economic stability.
Population
225,019 - 229,701
Key Industries
Purdue University, Manufacturing ($8.2B impact), Research & Development
Table of Contents
Information is for educational purposes only. Dual market dynamics require area-specific analysis. Consult qualified professionals for specific advice.
Local Tax Considerations
Property taxes, transfer taxes, and local incentives
Property Tax Rates
Average Rate
0.64% - 0.73%
Assessment Method
Assessed Value (Indiana Property Tax Code)
MSA rate (0.64-0.73%) vs State average (0.77%)
Below state average, highly competitive
Transfer Taxes & Fees
Transfer Tax Rate
0.00%
Indiana has no state transfer tax; local fees may apply
Local Tax Incentives
Purdue Research Foundation Partnerships
Economic development partnerships and technology transfer opportunities
Eligibility: Businesses partnering with Purdue University research
Greater Lafayette Economic Development Incentives
Tax incentives for business development and job creation
Eligibility: Qualifying business developments and expansions
Manufacturing Excellence Incentives
Incentives supporting manufacturing and industrial development
Eligibility: Manufacturing companies and industrial facilities
Semiconductor Workforce Development
$5 million initiative for semiconductor industry workforce
Eligibility: Companies supporting semiconductor industry development
Opportunity Zones
Number of Zones
1
Key Locations
- Census Tract 7, Lafayette
Opportunity Zones offer significant tax benefits for long-term investments, including deferral and potential elimination of capital gains taxes.
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Market Profile Dashboard
Economic indicators and market trends
Population
225,019 - 229,701
Growth: +1.2% annually
Median Income
$61,349 (MSA), $52,946 (Lafayette city)
Unemployment
3.2%
Job Growth
+2.1% annually
Economic Drivers
Market Trends
Median Home Price (West Lafayette)
$369,000 - $450,000
Median Home Price (Lafayette)
$233,000 - $315,000
Average Rent
$1,200 - $1,500/mo
Cap Rates
7% - 9.5%
Demographics
Median Age
33.7 years (Lafayette), younger in West Lafayette
Bachelor's Degree+
28.8% (Lafayette), higher in West Lafayette
Owner Occupied
62.8%
Property Type Analysis
Investment opportunities by asset class
Multifamily
Strong demand from university students, faculty, staff, and manufacturing workers.
Market Metrics
- Cap Rates: 8.2%
- Vacancy Trends: Low vacancy at 6.8% with university anchor
- Demand Forecast: Excellent fundamentals with Purdue stability
Risk Factors
- Student housing seasonality
- Dual market complexity
Opportunities
- University employment stability
- Manufacturing worker demand
- Emerging market recognition
Single-Family Rental
Popular with university faculty, professionals, and families.
Market Metrics
- Cap Rates: 8.5%
- Vacancy Trends: Very low vacancy at 5.2% with diverse employment
- Demand Forecast: Outstanding fundamentals with economic diversity
Risk Factors
- Higher owner-occupancy rate
- Premium pricing in West Lafayette
Opportunities
- University anchor stability
- Emerging market leadership
- Competitive property taxes
Neighborhood Spotlights
Up-and-coming areas and investment hotspots
West Lafayette (University Area)
Premium university market with Purdue campus proximity and high-end housing
Investment Thesis
Premium university market with Purdue faculty, staff, and graduate student demand, higher rental rates supported by university employment, and long-term stability from educational anchor.
Median Price
$417,000
Price Growth
+12.7% YoY
Rental Yield
6.5%
Days on Market
25 days
Key Highlights
Development Pipeline
University expansion and high-end residential development
Lafayette Downtown
Urban core with opportunity zone benefits and diverse employment access
Investment Thesis
Opportunity zone advantages, downtown revitalization, diverse employment access, and moderate pricing creating rental demand from professionals and service workers.
Median Price
$285,000
Price Growth
+8.1% YoY
Rental Yield
8.8%
Days on Market
32 days
Key Highlights
Development Pipeline
Downtown revitalization and mixed-use development
Lafayette Residential Areas
Established neighborhoods with moderate pricing and family housing
Investment Thesis
Affordable entry points, family-oriented housing, manufacturing and service employment access, and competitive rental yields creating stable investment opportunities.
Median Price
$245,000
Price Growth
+6.2% YoY
Rental Yield
9.5%
Days on Market
35 days
Key Highlights
Development Pipeline
Residential expansion and infrastructure improvements
Suburban Growth Areas
Newer developments with modern amenities and professional housing
Investment Thesis
Modern housing stock, professional demographics, university and corporate employment access, and growth potential creating rental demand from higher-income tenants.
Median Price
$325,000
Price Growth
+9.8% YoY
Rental Yield
7.8%
Days on Market
28 days
Key Highlights
Development Pipeline
Suburban expansion and commercial development
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Compare Markets
See how this MSA stacks up against others
Compare Markets
| Metric | Lafayette West Lafayette (Current) | Bloomington In | Muncie | Terre Haute |
|---|---|---|---|---|
| Population | 4.0M | 4.0M | 4.0M | 4.0M |
| Median Property Price | $750K | $750K | $750K | $750K |
| Average Cap Rate | 5.2% | 5.2% | 5.2% | 5.2% |
| Job Growth Rate | 2.1% | 2.1% | 2.1% | 2.1% |
| Rental Yield | 4.8% | 4.8% | 4.8% | 4.8% |
| Days on Market | 25 | 25 | 25 | 25 |
Frequently Asked Questions
Common questions about Lafayette West Lafayette 1031 exchanges
Lafayette-West Lafayette offers exceptional fundamentals: #7 Emerging Housing Market nationally (highest Indiana ranking), Purdue University's $8.2 billion economic impact providing stability, dual market dynamics with options from $233K-$450K, highly competitive property taxes (0.64-0.73% vs. 1.02% national), university-driven economic stability, and manufacturing excellence creating diverse rental demand.
The MSA features two distinct markets: West Lafayette premium ($369K-$450K) near Purdue University with faculty/staff demand and higher rents, and Lafayette moderate ($233K-$315K) with broader employment base and competitive yields. This provides investment options across price points while maintaining university economic stability throughout the region.
Purdue University provides massive economic stability: $8.2 billion impact on Indiana manufacturing since 2005, assists nearly 800 companies annually, major employer with faculty/staff housing demand, student population creating rental demand, research and development leadership, entrepreneurial ecosystem with record growth, and long-term institutional stability as educational anchor.
The market earned #7 Emerging Housing Market ranking due to: university-anchored economic stability, strong price appreciation (+3.8% to +12.7%), competitive fundamentals, manufacturing excellence, research and development leadership, entrepreneurial growth, economic diversity, and recognition as highest-ranked Indiana market on emerging index.
Property taxes are highly competitive: 0.64-0.73% effective rates vs. 1.02% national average, below 0.77% Indiana state average, West Lafayette slightly higher (0.65-0.73%) due to premium location, Lafayette lower rates providing excellent value, and competitive carrying costs supporting strong cash flow potential for investors.