Fundamentals Drive Indianapolis Market Rise
Indianapolis continued to build on the solid fundamentals it highlighted last year, as the multifamily market bounced back with renewed strength. Rents were up 0.9% on a trailing three-month basis through August, to an average of $1,200—a new record for the metro, but still distant from the $1,718 U.S. figure. Growth outpaced the national average by 30 basis points. On a year-over-year basis, rents were 12.5% higher, exceeding most metros tracked by Yardi Matrix.
After recording a decade-topping figure of 1.4% in December last year, the unemployment rate dropped to 3.2% in July this year, according to preliminary data from the Bureau of Labor Statistics. The metro’s labor pool expanded by 4.1% since last year (39,700 jobs), 60 basis points behind the national rate. Gains were led by the professional and business services sector, which added 11,100 positions (6.1%), followed by leisure and hospitality, which regained 10,000 jobs (8.9%). Manufacturing jobs in the state are about to get a boost, with a $491 million investment announced by General Motors. The company is planning to upgrade and expand its Grant County facility, which produces parts for electric vehicles.
Indianapolis had 7,095 units underway as of August. Deliveries amounted to 932 units, or 0.5% of stock, 80 basis points behind the national average. Construction activity is intensifying however, with 4,184 units breaking ground—up 160.8% year-over-year.
Read the full Matrix Multifamily Indianapolis Report-October 2022