By Adriana PopIndianapolis rent evolution, click to enlarge
Demand for apartments continues to be strong in Indianapolis, thanks to the locale’s relative affordability. The city’s high-quality education system and skilled workforce attract residents and employers, propelling economic growth.
The construction, health care, hospitality and office-using sectors accounted for the largest number of new hires in Indianapolis in 2016. The region’s high-tech industry has expanded by 28.0 percent since 2013, continuing to support a growing job market and new real estate development. Salesforce.com, the San Francisco-based cloud computing company, which already employs 1,400 people in Indianapolis, plans to hire an additional 800 employees by 2021. Infosys, a global information technology consulting firm, has also selected the city for its upcoming business tech hub, where it intends to create 2,000 jobs. Genesys, another large tech employer, acquired Indianapolis startup Interactive Intelligence for $1.4 billion in 2016, and it plans to add even more jobs to the 1,000 positions currently based in the metro.
Expanding opportunities, especially in the downtown area, are drawing residents to Indianapolis. Rents, as well as home and condo prices in this part of the city, are at their highest levels. Developers continue targeting this section of the market, which is set to reach about 30,000 residents by 2020. We expect multifamily demand to keep up with supply and generate a rent increase of 3.7 percent in 2017.
Read the full Yardi Matrix report.