Indianapolis Multifamily Report – April 2022
Despite deceleration, yearly rent growth remained in the double digits.
Indianapolis rent evolution, click to enlarge
Indianapolis multifamily shows fresh signs of improvement, with the metro spared by the worst effects of the health crisis. The average rent was up 0.8 percent on a trailing three-month (T3) basis through February, to $1,121. While growth stood 20 basis points above the U.S. average, rates have continued their decelerating trajectory since the 1.2 percent peak of August last year, in line with seasonal trends. On a year-over-year basis, rates were up 12.9 percent as of February, below the record 15.4 percent national average but levels above what the metro recorded before the pandemic.
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Indianapolis sales volume and number of properties sold, click to enlarge
Indianapolis’ unemployment rate dropped to its lowest level in a decade, down to 1.2 percent according to preliminary December data from the Bureau of Labor Statistics. The employment market added 33,800 jobs for a 2.7 percent uptick last year. All sectors recorded gains, apart from information, which lost 100 positions for a 0.8 percent decrease. In December, Elanco Animal Health Inc. announced plans to break ground on the company’s new $100 million headquarters on the site of the former General Motors Stamping Plant, west of the metro’s downtown area.
A total of 2,453 units came online across Indianapolis last year, nearly on par with 2020 but below the decade high of 3,349 apartments completed in 2017. As of February, the metro had an additional 4,968 units underway.
