Underlying Fundamentals Pave the Way
As Indiana moved into the final stage of its overarching reopening plan, Indianapolis took a slightly different yet measured path to recovery, due to population density. Although the crisis has taken a toll on the economy, the metro’s strong multifamily fundamentals have so far withstood the economic uncertainty. Rents in Indianapolis were up 0.4% to $966 on a trailing three-month basis as of September, below the $1,463 U.S. figure.
In a move to encourage tourism- and convention-related business, the Indianapolis City-County Council approved up to $155 million in bonds to expand the Indiana Convention Center. According to Visit Indy, the expansion will bring Indianapolis’ capacity to bid on North America’s top conventions from 75% to 82%. Due to the pandemic, more than 330 conventions were canceled, amounting to more than $600 million in lost economic impact.
As of September, 5,214 units were under construction in the metro, and developers added nearly 1,000 units to inventory year-to-date, as construction was deemed an essential service amid shelter-in-place orders. Some $373 million in multifamily assets traded in 2020 through September, marking a 13% decline compared to the same interval last year.
Read the full Matrix Multifamily Indianapolis Report