A beachfront neighborhood in Gary, Indiana, is experiencing an uptick in new homes, and one new listing could break a record.
A new construction home in the Miller Beach neighborhood hit the market Saturday for $2.5 million. According to the agent, that would be a record sale price for the Northwest Indiana town, also known commonly as Michael Jackson’s birthplace.
It’s a turn for the city that was plagued with a reputation for high homicide rates in the 1990s, though homicides have declined by nearly 35% since then, according to the city. Miller Beach, however, has long been an attractive area, and agents say it’s about 50% primary residences and 50% vacation homes.
The high-priced listing is one of the first new construction waterfront homes in the neighborhood to be listed, serving as one of the first public appearances of Gary’s changing perception, noted listing agent Sam Geraci of INcoast Homes.
Gary’s average home price is $125,370, according to Homes.com, and it’s located about 31 miles outside of Chicago. In Miller Beach, the average price is $285,007.
The newly listed contemporary home was built in 2024 and designed by Chicago-based architecture firm DeSalvoFlorian, which primarily works in the city but has also designed multiple high-end new homes in Miller Beach. The house has 2,838 square feet, four bedrooms, and three and a half bathrooms, situated on a 10,000-square-foot lot overlooking Lake Michigan.
It's three levels high with one rear deck on each level overlooking the beach. Floor-to-ceiling windows and blinds cost upward of $200,000, according to Geraci. It includes a sauna, greenhouse, outdoor shower and fire pit.
Gary saw its first $1 million sale in 2021, sold by Gene Ayers of Ayers Realtors, but several $1 million-plus sales have occurred since then. Ayers on Tuesday closed on 7530 Oak Ave., a beachfront home listed for $1.19 million that sold for $1.31 million five days after listing.
Ayers told Homes.com that although $2.5 million is the highest resale price, “more than that has been invested” in homes, and pointed toward several home sales exceeding $600,000 that were torn down and replaced with a new build.
Geraci has seen new construction in Miller Beach cropping up over the past six years or so, an influx resulting from Gary’s proximity to Chicago and direct beachfront access.
“People who are at the trend or ahead of the trend are buying and investing in Miller Beach, not just on the water, but in the area overall,” Geraci told Homes.com in an interview. “There’s been a lot of interest from people who are into beaches and in the know for many years in Miller, but now it’s really exploded.”
A significant bonus is the quality of the beach, he added, stating that homes can be built directly beachfront without a bluff and retaining walls, plus the beach has less erosion than others on Lake Michigan.
Last year, an update to the South Shore Line railroad connecting Chicago to Gary added a second track, increasing frequency and easing access for travelers. Geraci noted that COVID may have influenced a demand for beachfront properties, propping up the Miller Beach market.