Southwestern Indiana: Realtors Region 5 Profile

Realtors Region 5 consists of 21 counties in the southwestern portion of the state, including Clay, Daviess, Dubois, Gibson, Greene, Knox, Lawrence, Martin, Monroe, Owen, Parke, Perry, Pike, Posey, Putnam, Spencer, Sullivan, Vanderburgh, Vermillion, Vigo and Warrick (see Figure 1). This region covers a land area of 8,505 square miles and has a population density of 108 people per square mile, a density that is higher than the national average of 88 people per square mile but lower than the Indiana average of 179 people per square mile.

Population

As of 2009, Realtors Region 5 had 918,709 residents. Evansville is the largest city with a 2009 population of 116,584. The city of Bloomington comes in a distant second, with a population estimate of 71,939 (see Table 1).

Table 1: Largest Cities in Region 5, 2009

Source: IBRC, using U.S. Census Bureau data

The population in Realtors Region 5 increased by nearly 18,000 between Census 2000 and the latest estimate in 2009. This marks a solid positive change for this decade (see Figure 2). Region 5 is projected to continue its population growth through 2015, by which time its population would be more than 923,300 according to the official county population projections from the Indiana Business Research Center.

Figure 2: Region 5 Population Levels, 1981 to 2009

Source: IBRC, using U.S. Census Bureau data

The age mix of Region 5 differs from the state, most notably in the college age population, where Realtors Region 5 has a much higher proportion than the state (see Figure 3). However, the region also has a lower proportion of its population who are school age (5 to 17).

Figure 3: Current Age Structure of Realtors Region 5, 2009

Source: IBRC, using U.S. Census Bureau data

Among the six Realtors regions, Region 5 ranks fifth in net migration from other nations, with 886 more people moving into the region from overseas or across borders between 2008 and 2009 than moving out. The region had a domestic net loss of 1,383 people—that is, out-migration to other regions in Indiana or to other states between 2008 and 2009.

More than 93 percent of the population is white in Realtors Region 5, with only 3.8 percent black (compared to the state’s 9.2 percent) and 1.3 percent Asian. Only 1.8 percent of the region’s population is Hispanic, compared to Indiana’s 5.5 percent.

Housing and Life Styles

Realtors Region 5 ranks third among the six regions with 414,152 housing units (2009 estimate). The majority of units (65.7 percent) were owner-occupied according to Census 2000. Realtors Region 5 had a similar proportion of owner-occupied units as the state (65.9 percent). More than half of households in the region were married couples (22.9 percent with children, 30.7 percent without), 7.9 percent were single-parent households, and 27.4 percent lived alone.

Using aggregated data from the Indiana Association of Realtors database, which includes Multiple Listing Service (MLS) data, we can look at recent home sales and a variety of characteristics of homes sold. In 2009, there were 8,120 homes sold in Realtors Region 5. Homes sold in the region tended to be older than those statewide, with the largest number of homes being built in 1959 or earlier (see Figure 4).

Figure 4: Percent of Homes Sold in 2009 by Year Built

Note: Greene County data are not available.
Source: IBRC, using Indiana Association of Realtors data

Looking at individual counties in the region, there is a significant spread based on the median age of homes sold in 2009 (see Figure 5).

Figure 5: Median Year Built for Homes Sold in 2009 by County in Realtors Region 5

Note: Greene County data are not available.
Source: IBRC, using Indiana Association of Realtors data

In 2009, nearly 74 percent of homes sold in Realtors Region 5 were priced under $150,000, and only a few were priced at $1 million or more. Using the state as a comparison, Region 5 had a higher proportion of homes priced between $50,000 and $99,000 (see Figure 6).

Figure 6: Cost of Homes Sold Compared to the State, 2009

Source: IBRC, using Indiana Association of Realtors data

Labor Force

Nearly 463,700 residents of the region are part of the labor force, with 424,400 people employed and the remaining 39,300 actively seeking work (i.e., unemployed) based on 2009 annual averages (see Figure 7). The September 2010 unemployment rate for the region was 8.4 percent, lower than the state rate of 9.5 percent for that same month (figures are not seasonally adjusted). For a closer inspection of labor force numbers, be sure to visit Hoosiers by the Numbers at www.hoosierdata.in.gov, the workforce development website of the Indiana Department of Workforce Development. These numbers are released monthly as preliminary estimates and the previous month’s figures are revised.

Figure 7: Realtors Region 5 Resident Labor Force and Employment, 1990 to 2009

Note: Data are not seasonally adjusted.
Source: IBRC, using Indiana Department of Workforce Development data

Work

The vast majority of residents work in private industry. The largest sectors in the region include manufacturing, health care and social services, and retail trade (see Table 2).

Table 2: Realtors Region 5 Jobs by Industry, 2009

Source: IBRC, using U.S. Bureau of Labor Statistics data

Jobs by Industry Cluster

Clusters can be a valuable way to organize our thinking about industry mix in an area. The Purdue Center for Regional Development has identified 17 industry clusters that give insight into the core industries and their supplier industries. The resulting data can help the region consider which are important or emerging clusters (see Table 3).

Table 3: Realtors Region 5 Industry Clusters, 2008

*These are subclusters within the manufacturing supercluster.
Source: IBRC, using U.S. Bureau of Labor Statistics and Purdue Center for Regional Development data

In using the table, it’s worthwhile to consider the actual employment numbers shown. It’s almost always good to consider “how many” jobs comprise a particular cluster. Another valuable measure is the location quotient (LQ) provided in the column next to the employment numbers. Anything over 1.0 means the region has what could be considered export capacity—exporting to neighbors in another region, another state, across the nation or around the globe. The idea of producing “more than we need” indicates that those clusters are serving needs outside the region as well as within its borders. In short, having an LQ higher than 1.0 is good; if it is a lot higher, then the cluster can be considered substantial and is at least worth a closer look as part of an economic development strategy.

If clusters have piqued your interest, be sure to turn your browser to www.statsamerica.org/innovation to see these data in action for areas throughout Indiana and in comparison to the rest of the country.

Time to Explore

We hope to have given you a fast trek through the numbers. We could go on, but then that might spoil your fun in going to STATS Indiana’s IN Depth Profiles and learning more about this region or the whole host of regions we have available.

Carol O. Rogers
Deputy Director and Executive Editor, Indiana Business Research Center, Indiana University Kelley School of Business