Rent Growth Stabilizes, Development Slows
Indianapolis’ multifamily market maintained a steady course through the nationwide economic slowdown, according to the latest Yardi Matrix Indianapolis multifamily market report. Rent growth was 0.4% on a trailing three-month basis through August—20 basis points above the national rate—to an average of $1,246. Year-over-year rent development stood at 4.8%, 330 basis points higher than the U.S. figure.
The unemployment rate in Indianapolis reached 3.6% as of July, according to preliminary data from the Bureau of Labor Statistics, 10 basis points higher than the U.S. rate. The figure climbed 80 basis points from January, in line with the overall economic slowdown. Over the 12-month period ending in June, Indianapolis gained 40,700 jobs, with the leisure and hospitality sector leading growth (8,100 jobs), followed by education and health services (7,900 jobs). Indiana’s economic growth continues to be partially fueled by large investments in manufacturing, such as an upcoming $3.2 billion project.
Unlike most major metros tracked by Yardi Matrix, Indianapolis’ completions did not slow down. The metro added 1,369 units year-to-date through August, which exceeded 2022’s total. Meanwhile, investment volume during the same period dropped 72.9% year-over-year.
Read the full Yardi Matrix Indianapolis Multifamily Market Report: October 2023
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