About the Indianapolis Housing Market
The Indianapolis metropolitan area is the 32nd most populous metropolitan area in the United States, and it has a population of over 2 million people. It is part of a network of cities known as the Great Lakes Megalopolis, which contains an estimated 59 million people.
Indianapolis has been a top destination for investors for years. With a booming economy, strong investments in neighborhood revitalization, and some of the most affordable housing in the US.
Indianapolis is sometimes called the Racing Capital of the World because of its Indianapolis Motor Speedway, which takes up 560 acres on the west side of town. Every May, thousands of people show up to watch one of the largest-attended sporting events in the U.S., the Indianapolis 500. Sports in general play a huge role in the region’s economy.
Health care, tourism and sporting events are major employment contributors in this area. A number of national companies have their headquarters here including Eli Lilly, Anthem Inc., RCI, and Simon Property Group.
Median Household Income: $70,224
Metro Population: 2.12 Million
11-Year Population Growth: 12.37%
Median Home Price: $262,770
Median Rent Per Month: $1,453 (0.55% rent-to-value ratio)
1-Year Equity Growth: 15.7%
Tenant Laws: Landlord-Friendly
8-Year Equity Growth (January 2014 – December 2022): 89%
1-Year Rent Growth: 9%
8-Year Rent Growth (January 2014 – December 2022): 42%
Job Growth: +33,400 CES jobs created over the last year
1-Year Job Growth Rate: 3.04% (21% lower than the national average)
Unemployment Rate: 2.8% (24% lower than the national average)
What to Like
Affordable cost of living
Excellent economy & jobs
Safe city
Beautiful parks and greenery
What to Watch Out For
Harsh winters
Limited public transport
Heavy traffic
Not as diverse as other cities
– Downtown Indianapolis has been named one of the best in the U.S. by Livability.com, and it boasts two major league sports teams—the NBA Indiana Pacers, who play at the 18,000-seat Conseco Fieldhouse, and the NFL Indianapolis Colts, who play at the 56,000-seat RCA dome.
– In the past eight years, home values in Indianapolis have increased by 88.7%. Indianapolis’s median rent appreciation has also been on the up-and-up over the past eight years, increasing by 42% between July 2014 and July 2022.
– The average home value in Indianapolis is $262,770. This is 23% lower than the US average home value of $343,000. The average monthly rent in Indianapolis is $1,453—26% lower than the US average monthly rent of $1,973.
– The real estate market in Indianapolis has been strong in recent years, with home values increasing steadily. According to Zillow, the median home value in Indianapolis is around $180,000, which is lower than the national median but has increased by over 10% in the past year.
– Indianapolis has seen a significant amount of development in recent years, including new residential and commercial construction in the downtown area. Major projects have included the opening of the Bottleworks District, a mixed-use development with restaurants, retail, and apartments, and the ongoing redevelopment of the former GM stamping plant site on the west side of the city.
Growing population
Indianapolis is the 2nd largest city in the Midwest and 14th largest in the U.S. The population of Indianapolis is over 2 million, growing by 12.4% since 2010, which is 70% faster than the national average.
Strong job market
The Indianapolis metropolitan statistical area (MSA) is projected to add jobs at a rate of 2.9% annually from 2021-2024, according to projections by the Indiana University Center for Econometric Model Research (CEMR). The growth rate is higher than any other MSA in the state and stronger than the statewide average of 2%.
Fast growth rate
Indianapolis has been growing at a yearly 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.
Purchasing Property in Indianapolis, Indiana
The Indianapolis real estate market is very competitive, but prices of homes are still affordable. The average price of a home in Indianapolis is $262,770—23% lower than the national average.
Indianapolis is ideally located in the center of America with easy access to big-city amenities and relaxed comfort that comes only from being nestled in a small town. The Indianapolis region has become a magnet for out-of-state investors because of its strong economy and job growth; as well as its terrific location and affordable property prices compared to other major cities in America.
The 10 Indianapolis neighborhoods with the highest home value increases since 2000 are Near Northside, Old Northside, Arsenal Heights West, Ransom Place, N Belville Ave., N Rural St., Arsenal Heights, Fletcher Place, Fountain Square, and Fall Creek Place East.
Indianapolis, Indiana
No warranty, expressed or implied, is made regarding the accuracy, adequacy, completeness, reliability or usefulness of any data provided. These data are provided “as is.” All warranties of any kind, expressed or implied, including but not limited to fitness for a particular use, freedom from computer viruses, and non-infringement of proprietary rights, are disclaimed. By visiting this website, the user agrees that the data presented here is added and changed periodically, and data may become out-of-date quickly. This data is provided for informational use only, and the user is encouraged to perform his/her own research.