Indianapolis Multifamily Report – April 2025
The local market continues to show its strength.
The Indianapolis multifamily market started the year with good momentum across fundamentals, in line with other large midwestern markets. Average advertised asking rents were up 0.2 percent on a trailing three-month basis through February, to $1,295, 20 basis points above the U.S. figure, which remained flat for the second consecutive month. Year-over-year, rents were up 3.2 percent, ranking seventh among the top 30 metros tracked by Yardi Matrix.
Four of the top five metros for year-over-year rent growth were in the Midwest. Indianapolis ranked behind Kansas City, Mo. (4.1 percent), Columbus, Ohio (3.8 percent), Chicago (3.6 percent) and Detroit (3.5 percent). Employment growth remained solid, at 2.4 percent year-over-year through December, ahead of the U.S. by 110 basis points. Unemployment clocked in at 4.1 percent in January, just 10 basis points above the national average, according to preliminary data from the Bureau of Labor Statistics. The metro remained on track, as no major shifts in unemployment were registered last year. Over the 12-month period ending in December, Indianapolis added 30,000 net jobs, with education and health services (7,600 jobs) and leisure and hospitality (7,400 jobs) leading gains.
Last year marked the highest total deliveries in the past eight years, with 5,958 units completed. This year will likely become the second best year for volume, as the metro had 8,785 units under construction. Yardi Matrix expects roughly 4,800 of this total to come online.
