Rents, Development Soften, But Stay Healthy
Indianapolis’ multifamily market softened at the end of the summer, as economic uncertainty impacted activity across several metrics, according to the latest Yardi Matrix Indianapolis multifamily market report. But overall, the Midwest continued to outperform the nation, and while Indianapolis was in the bottom half of that list, it maintained relatively healthy fundamentals. Average advertised asking rents ticked up 0.1% to $1,307, on a trailing three-month basis through August, on par with the national average. Occupancy ticked down 20 basis points year-over-year through July, to 94.0%, below the 94.7% U.S. average, as per the latest national multifamily market report.
Employment growth in the metro continued its 10-month slowdown, to 0.4% year-over-year through June. The figure was half the national average. Over the 12-month period ending in June, Indianapolis added 3,600 net jobs, with government (2,900 positions) and trade, transportation and utilities (2,400) leading gains. Unemployment was 3.6% in August, below the 4.3% U.S. figure, according to preliminary data from the Bureau of Labor Statistics. Indiana University’s new hospital topped out earlier this year. The 2.5 million-square-foot development is expected to come online in 2027, with costs reaching $4.3 billion this year.
Construction activity also slowed down but remained healthy following 2024’s record-breaking completions. Developers had 5,740 units underway as of August and delivered 4,096 units since the start of the year.
Read the full Yardi Matrix Indianapolis Multifamily Market Report: October 2025
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