With the Yardi Matrix publication of the Multifamily Report for Indianapolis for Spring of 2019, we get a snapshot of what is going well in the Circle City and what might improve. We take a look at the Yardi report data in today’s BAM Blog…

The Multifamily Report tracked numbers up through March and took a look at everything from multifamily demand, to the local economy, to new home sales, and beyond. To read the entire report, click here. We hit some of the highlights below:

  • According to Yardi, both demographic and economic trends kept multifamily demand fairly healthy in Indy.
  • Year-over-year rent growth was 3.2% in March, meeting the national average.
  • Yardi says development activity should pick up this year, with a total of 2,070 units expected to be delivered in 2019.
  • Yardi expects rent to advance 3.2% this year.
  • Yardi notes that investors “drove multifamily transaction volume to a cycle peak” last year that hit $880 million.
  • Carmel Woods, one of BAM’s acquisitions, is noted in the Yardi report as a recent Indianapolis transaction.
  • Indy metro’s average rent in March was at $911, which is lower than the average of $1,430.
  • Necessity-renter class rent rose by 3.9% while luxury renter class rent rose 2.3%.
  • Demand is predicted to remain stable across asset classes, especially since the metro is the state’s main source of population growth.
  • Rent gains were highest in Franklin at 5.9%, followed by Indianapolis-Wayne West at 5.7%.
  • Indy added 1,200 jobs in the 12 months that ended in February.
  • Although Indianapolis is one of the country’s most affordable cities for housing costs, Yardi reports last year was a 10-year low in affordability due to rising interest rates, higher prices, higher development costs, and low inventories.
  • Home sales fell for three months in a row, as reported after February 2019 by MIBOR.
  • Downtown Indy metro has the most multifamily construction underway as of March, with 970 units.
  • According to Yardi, during 2019’s first quarter six workforce housing properties sold for $84,595 a unit.

The BAM Bottom Line: A solid economy has kept demand steady and demand should remain steady throughout the coming year. Rent growth sees optimistic predictions, as does development – especially in the Indy metro.