Indianapolis Multifamily Report – October 2026
Asking rents are contracting as employment pool shrinks.
Indianapolis multifamily fundamentals remained under pressure, with advertised asking rents declining 0.1 percent on a trailing three-month basis through August, to $1,329. This contrasted with the 0.2 percent U.S. increase to $1,773. Year-over-year, the metro’s rents fell 0.2 percent, while the national average rose 0.2 percent. Occupancy in stabilized properties declined 60 basis points year-over-year, to 93.1 percent.
Indianapolis employment growth declined 1.1 percent year-over-year through June, remaining negative for the seventh-consecutive month, while the national rate plateaued. Unemployment stood at 3.4 percent in August, below the 4.0 percent U.S. average but slightly above Indiana’s 3.3 percent rate. Mining, logging and construction led job gains, while information and government posted the sharpest declines. Notable CRE drivers include IU Health’s $4.3 billion downtown hospital campus.
Supply activity slowed considerably. Indianapolis had 8,234 units underway as of August, while developers completed 686 apartments during the first eight months of the year, down from 5,113 units during the same period in 2025. Yardi Matrix expects 3,886 units to come online in 2026, below the five-year average of 4,076 units. Investment activity also moderated, with multifamily sales totaling $480 million through August, down from $580 million a year earlier.
