Recently, one of the seasonal Indianapolis multifamily reports was released by Yardi Matrix. As we close out the year and the multifamily fall, we recap the report’s highlights in today’s BAM Blog…
To read the report in its entirety, click here. Overall, there’s positive news for the Indy multifamily market, driven in large part by a healthy economy and job growth in specific sectors. Rent growth also grew for the year, which was higher than the national increase. The Circle City is keeping up with rental demand, and construction projects are many – especially when you look beyond the metro area.
The Stats for 2019
- Indy rents rose 4.1% year-over-year, which was higher than the national rate of 3.2%.
- Government, education and health services led the job growth fields, with 6,300 and 4,100 respectively.
- A large Eli Lilly tech investment should create about 100 highly-skilled new jobs.
- Although Indianapolis fell behind the national rate, the city still saw a .08% job increase.
- Construction saw an increase of 3,200 jobs, spurred by major infrastructure projects.
- Investors looking for higher yields than the ones in primary markets drove the average per-unit price up, but it still remained below the national average. ($79,690/$16,889)
- Developers, while still busy in the metro area, are also building in both Westfield-Noblesville and Carmel.
- Delivery through October of 2019 was 2,260 units.
- Yardi notes that they expect Indy to maintain absorption.
- Necessity-renter rates rose 4.7%, while Lifestyle rents bumped up 3.7%.
- According to Yardi, the economy and population increase is driving rental demand in desirable areas.
- Suburban markets like Greenwood-East and Indy-Lawrence saw higher rent increases: 7.7%/6.6%.
- Through October, around $411 million in multifamily assets traded in Indianapolis. According to Yardi, investment sales peaked in 2018 at $908 million.
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