Market Report
Indianapolis Multifamily Market Report
1Q 2026
Growing Communities Boost Apartment
Performance as Large Commercial Developments Emerge
Suburban expansion and core resilience define outlook. Indianapolis’ multifamily sector continues to be boosted by job creation and net in-migration levels that rank among the highest in the Midwest. Since 2020, outlying counties such as Boone, Hamilton, and Hancock have seen population increases of more than 10 percent. The resulting new renter demand has pushed monthly rates up as much as 50 percent over the past five years — far outpacing the CBD’s 19 percent rise. Even so, downtown vacancy remains below its long-term average, supported by limited supply since mid-2024 and by corporate relocations, such as Elanco’s move of over 700 employees to its new global headquarters. These factors will likely push the CBD rate into the low-5 percent range for the first time since 2022, sustaining rent growth throughout this year. Smaller submarkets such as Lawrence and Greenwood-Johnson County will capture a larger share of apartment completions in 2026, while deliveries in Carmel will comprise more than half of the metro’s deliveries. Elsewhere, a broader pullback in groundbreakings is materializing, which should aid fundamentals at existing properties beyond this year.
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