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Market Report

Indianapolis Multifamily Market Report

2025 Investment Forecast

Notable Affordability and Healthy Job
Growth Endear Families to Indianapolis Suburbs

Focused supply pressure eased by regionally strong demographics. A lower home price-to-income ratio and stronger job growth than many of Indianapolis’ Midwest peers is supporting the fastest rate of population growth among the region’s major markets this year. New residents, in turn, warrant recent and upcoming apartment completions. Nearly 50 percent of deliveries were in Carmel last year, followed by roughly 15 percent in the Greenwood-Johnson County submarket, both producing 10 percent year-over-year inventory growth rates. Carmel hosts one of the highest concentrations of office workers in the state, and new commitments by major firms like Eli Lilly buttress Class A and B demand. Ongoing supply pressure will weigh on rent growth here this year, however, despite strong net absorption. The Greenwood-Johnson County submarket, meanwhile, contains a cluster of logistics operations around Interstate 65 that maintains nearby demand for Class B and C units. Unlike Carmel, fewer 2025 projects here will aid rent and vacancy metrics. Supply pressure going forward will instead pick up Downtown, which may hold local vacancy near 7 percent in the short term. A lack of ample development in East, Northwest and Southwest Indianapolis should allow vacancy to keep tightening in these areas.
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