Yardi Matrix released their Multifamily Report for this summer and the heading for the Circle City is “Indianapolis Thrives.” Certainly, judging by many of their metrics, Indianapolis is indeed hitting upon all cylinders and experiencing a healthy economy and bustling activity in the multifamily market. BAM took a look at the Yardi report and we reveal just some of the reasons that Indy is a good place to work, live, and invest…

 

  • Multifamily growth remains strong in the report; this is also buoyed by economic health as well as jobs and talent coming to the area for the affordable cost-of-living and doing business.
  • The job market is jumping: education and health services are at the top of the list, leading job growth from April ’17 to April ’18. Multiple health care-related projects are kicking off and driving growth as well, such as I.U.’s Health campus downtown and the planned Bloomington regional health center.
  • Apartment construction is busiest in the city’s center and northern submarkets. Across the metro, as of April around 4,000 units were underway. Experts expect absorption to keep up with new supply; this is expected to drive a 2.7% rental increase next year.
  • Rents in rent-by-necessity housing rose 2.2% while lifestyle rents rose only .4%. According to the report, job growth, plus population and household growth kept the rental demand high across metro Indy.
  • The metro’s population growth should continue outpacing the national average in coming years, with experts expecting the labor market to see a boost from companies considering growth within the state. The report states they expect rental demand to remain high due to these factors.
  • The city saw 17,300 jobs added, only slightly lower than the national average of 1.7% with Indy at 1.3%.
  • 5,900 professional jobs were added thanks to the city’s busy tech industry. From mid-2017 to July of 2018, tech jobs accounted for 1/3 of all job commitments.
  • Three properties with a total of 267 units were delivered in Indy this year through April, adding to the 3,022 that were delivered in 2017. Most of these were luxury properties. Around 1,900 more units are expected this year.
  • In May, more than 4,000 units were under construction. There were 12,000 in the planning/permit stages. These supply additions, supported by the economy and demographics, are not expected to surpass demand.
  • More than $220 million in multifamily assets changed hands the first four months of the year; most of this was in rent-by-necessity housing.

 

According to this year’s summer report, Indianapolis has a lot to celebrate: a thriving economy, job growth, and consistent rental demand with potential for rental increases next year.