Indianapolis Multifamily Report – October 2022
Rent growth is topping the U.S. figure, a rare feat for a Midwestern city.
Indianapolis rent evolution, click to enlarge
Indianapolis continued to build on the solid fundamentals it highlighted last year, as the multifamily market bounced back with renewed strength. Rents were up 0.9 percent on a trailing three-month basis through August, to an average of $1,200—a new record for the metro, but still distant from the $1,718 U.S. figure.
Growth outpaced the national average by 30 basis points. On a year-over-year basis, rents were 12.5 percent higher, exceeding most metros tracked by Yardi Matrix.
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Indianapolis sales volume and number of properties sold, click to enlarge
After recording a decade-topping figure of 1.4 percent in December last year, the unemployment rate dropped to 3.2 percent in July this year, according to preliminary data from the Bureau of Labor Statistics. The metro’s labor pool expanded by 4.1 percent since last year (39,700 jobs), 60 basis points behind the national rate. Gains were led by the professional and business services sector, which added 11,100 positions (6.1 percent), followed by leisure and hospitality, which regained 10,000 jobs (8.9 percent). Manufacturing jobs in the state are about to get a boost, with a $491 million investment announced by General Motors. The company is planning to upgrade and expand its Grant County facility, which produces parts for electric vehicles.
Indianapolis had 7,095 units underway as of August. Deliveries amounted to 932 units, or 0.5 percent of stock, 80 basis points behind the national average. Construction activity is intensifying however, with 4,184 units breaking ground—up 160.8 percent year-over-year.
