INDIANAPOLIS HOUSING MARKET 2023

Aug 4, 2023

The Indianapolis housing market is very competitive. Homes in Indianapolis and surrounding areas receive multiple offers and sell in an average of 7 days.

The median sale price of a home in Indianapolis/Marion County was $272k last month, up 3% annually from the peak of the market in June 2022, and continues to outperform the national market.

The median sale price per square foot in Indianapolis is $151.

MARKET INFORMATION

Indianapolis Ranked #8 on RealWealth’s list of the 22 Best Places to Buy Rental Property in 2023 for Cash Flow & Appreciation

Indianapolis continues to be a great place to invest in real estate. It has affordable real estate, a steadily growing population, above-average home and rent appreciation rates, and a growing job market.

Indianapolis and the surrounding counties have a median home price of $272k and an average monthly rent range of $1,600 – $2,000. Over 46% of Indianapolis residents rent their homes, meaning there is high demand for rental properties in the area.

In February 2023, a new report from House Canary says the Indianapolis metro area saw a rent increase of about 30% last year, the highest in the country. “Well, because Indy’s so strong economically,” said Doug McCoy, director of real estate studies at Indiana University.The report shows the average Indy rent rose $400 over the last year, despite cities across the country seeing a decline.

Over the past eight years, home values in Indianapolis have increased by 88.7%. Indianapolis’s median rent appreciation has also increased over the past eight years; increasing by 42% between July 2014 and July 2022.

From October 2021 to October 2022, there were 33,400 new jobs created in Indianapolis; an increase of over 3%. Future job growth over the next 10 years is expected to be higher than the national average.
Just north of Indy, in Lebanon, a proposed $2.1 billion Eli Lilly manufacturing campus will begin construction with the goal of being operational by 2027. This will create 1,500 construction jobs and over 500 new jobs at the new Eli Lilly campus.

Other redevelopment initiatives include a $175 million project in downtown Indy, focusing on housing and office space, as well as a $40 million+ mixed use development and hundreds of new homes in McCordsville, just northeast of Indy.

POPULATION TRENDS

Indianapolis has been growing at an annual rate of 1.17%. Over the last 11 years, Indianapolis’s population has increased by 12.37%—almost 70% faster than the United States’ overall growth during that same period.

The current metro area population of Indianapolis in 2023
is 1,881,000, a 1.24% increase from 2022.

INDIANAPOLIS MIGRATION & RELOCATION TRENDS

During March 2023 – May 2023, 78% of homebuyers looked to stay within the metropolitan area, while only 22% of Indianapolis homebuyers searched to move out of Indianapolis.

Across the nation, 0.55% of homebuyers searched to move into Indianapolis from outside metros.

New York homebuyers searched to move into Indianapolis more than any other metro, followed by Seattle and LA.