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2023 Housing Market Overview for Real Estate Investors

Indianapolis Real Estate Market 2023

Learn trends and real estate statistics about the Indianapolis real estate market to determine if it’s a strong place for your next single family or multi family home investment.

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    Indianapolis Real Estate Market Trends and Statistics for Real Estate Investors 2023

    Indianapolis Real Estate Market Trends & Statistics 2023
    In this section, you’ll learn about the top factors that make Indianapolis one of the strongest real estate markets today, including: affordability, cash flow, population growth, and job growth.

    Data Sources:

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    In this section, we’ll discuss the median home value and rents in 2023 and over the last seven years. These trends are important for real estate investors to understand affordability and equity growth opportunities in Indianapolis.

    Home prices in many Indianapolis neighborhoods are below the national average.​

    Median Home Value

    Indianapolis vs United States

    The data in this chart is based on the average single family home in Indianapolis and the United States as of December 2022. 

    Indianapolis is a city with a lot of history, and its real estate market has seen its share of ups and downs. The median home value in Indianapolis is $262,770. That’s almost 24 percent less than the current national average home value of $343,292. In neighborhoods where Realwealth members invest, the median home value is $145,000 in 2022. That’s 58% lower than the US average. Indianapolis’s real estate market is very competitive, with a Redfin Compete score of 82 out of 100.

    Indianapolis rents are affordable compared to many markets around the nation

    Median Monthly Rent

    Indianapolis vs United States

    The data in this chart is based on the average single family home in Indianapolis and the United States as of December 2022. 

    The median monthly rent in Indianapolis is $1,453, which is 26% less than the national average. In the neighborhoods where RealWealth members invest, rents for single-family homes average $1,250. The price to rent ratio in Indy is 15, indicating that buying is slightly more affordable than renting here. 46% of Indianapolis households rent their homes, providing a solid opportunity for investors. The average rent to value ratio in Indianapolis metro areas is 0.55%, which is almost equal to the national average. For neighborhoods where RealWealth members invest, the average RTV ratio is 0.86%, 51.2% greater than the national average.

    Indianapolis has been appreciating quickly

    Median Home Value (2014-2022)

    Indianapolis vs United States




    In the past 8 years, home prices in Indianapolis have appreciated by 88.7%, growing at a rate of 9.5% annually. The rate of equity growth in the Indianapolis real estate market over the past 8 years exceeds the national average by 5.56%. Home prices in Indianapolis have been increasing steadily since 2010. The city’s improved economy and low inventory of homes for sale have contributed to this trend. Realwealth data indicates that home prices appreciated on average by 15.7% from $227,140 to $262,770 between July 2021 and July 2022.

    Indianapolis rents have also been rising rising quickly

    Median Monthly Rent (2014-2022)

    Indianapolis vs United States




    Indianapolis’ median rent appreciation has been on the up-and-up over the past 8 years, increasing by 42 percent between July 2014 and July 2022. The average annual rental price appreciation rate has been 5.13% since July 2014, while total rent price growth has been nearly identical to the national average of 2.7%. This indicates that rent appreciation in Indianapolis has historically been in sync with national trends—a sign of a stable real estate market!

    Indianapolis Population Trends

    One of the most promising signs of a strong real estate market is population growth. In this section, we’ll discuss what’s happening in the Indianapolis metro in that area.

    Indianapolis' population has been growing quickly

    Population Growth

    Indianapolis Metro Area


    CHANGE 2010-2021



    The Indianapolis-Carmel-Anderson metro area is the 32nd most populous metro area in America, with a current population of 2.12 million people. And it’s growing—fast! The city’s population is growing at the rate of 1.17% per year, which is 69.72% greater than the average growth rate of the US. Indianapolis has been able to attract new residents due to strong job growth, a relatively quick recovery from the Great Recession, and a moderate cost of living.

    Indianapolis Employment Trends

    Another sign of a good place to invest in real estate is a strong economy. In this section, we’ll discuss what’s happening in with jobs in Indianapolis.

    Indianapolis has been experiencing solid job growth

    Job Growth

    Indianapolis Metro Area


    NEW JOBS 2021-2022


    Indianapolis has been experiencing an influx of young professionals and their employers alike, thanks to its growing technology industry and bustling economy. In fact, between July 2021 and July 2022, the Indianapolis economy added 236,600 jobs. Indianapolis’s job growth rate was 4.06% during the past 12 months, almost 6% higher than the average US job growth rate. And according to data from, Indianapolis is expected to have a higher than average job growth rate over the next ten years, at 37.5 percent, compared to 33.5 percent for the US as a whole. The tech industry is growing rapidly in Indianapolis. The CEO of Salesforce has even said that Indianapolis is “the best kept secret in the country.” Major employers in Indianapolis include Indiana University Health, Eli Lilly and Company, Walmart, Amazon and Kroger —and that doesn’t even include all of the startups and small businesses that are popping up here!

    Major employers in Indianapolis

    Indianapolis Real Estate Market Trends & Statistics 2023

    Why Invest in the Indianapolis Housing Market Today

    In this section, we’ll recap what we’ve covered above in terms of Indianapolis’ housing market trends, population trends and employment trends to help you understand what makes Indy a strong place to invest in 2023.

    Affordable Real Estate

    Although the Indianapolis real estate market is very competitive, prices of homes are still affordable. In fact, the average price of a home in Indianapolis is $262,770. This is 23% lower than the national average! The most affordable neighborhood in Indianapolis is Chesterfield, where the median home price is $110,000. Indianapolis is ranked #5 for top cities where you can live really well on a $60,000 salary.

    High potential cash flow

    Indianapolis is a city that attracts many investors because it is considered a “cash flow market.” Property values tend not to fluctuate dramatically, making it a relatively stable market. Indianapolis neighborhoods where Realwealth members invest have an average rent to value ratio (RTV) of 0.86 percent, 51 percent higher than the national average.

    High population growth rate

    Indianapolis is one of the fastest-growing cities in the United States. In fact, it’s been experiencing a steady increase in population and economic output for several years now, and it does not appear that this trend will cease anytime soon. The population of Indianapolis has steadily increased since 2010. As of July 2021, the current population of the Indianapolis metro area was 2.126 million. That’s up from 1.89 million in 2010—a growth rate of over 12%. Indianapolis is the largest city in Indiana by population. Fort Wayne, the second-largest city, is about one-third the size of Indianapolis.

    Job growth rate is higher than the US average

    The city of Indianapolis has seen a lot of job growth over the last several years. In fact, according to a 2017 Forbes article, Indianapolis ranked fifth on the list of top cities for tech jobs. With a job growth rate of 4.06%, Indianapolis has created almost 6% more jobs than the average American city during the past 12 months.

    Strong equity growth potential

    Indianapolis is a city that is growing fast, and the housing market is no exception. In fact, home prices have appreciated by 88.7% over the last 8 years, growing at a rate of 9.5% annually. According to data from Realwealth, home prices appreciated on average by 15.7% between 2021 and 2022, rising from $227,140 to $262,770. Also, the average annual rent price appreciation rate in Indianapolis is 5.13%.

    Strong rental property demand

    In Indianapolis, 46% of households rent their homes. The median rent has appreciated by a total of 42% over the past 8 years, from July 2014 to July 2022. According to Apartment List’s September 2022 data, the average vacancy rate for Indianapolis rental real estate is 4.7%. This means there is plenty of demand for rental properties, rents are increasing steadily, and the vacancy rate is low. This combination of factors will lead to steady rent growth in the future.

    Newsworthy Building and Developments in Indianapolis

    Planned developments can help you as an investor to estimate how the value of your investment property might change in the future. Here are some notable projects in the works in Indianapolis right now:

    Indianapolis City Market East Project

    This $175 million partnership between the city of Indianapolis, Gershman and Citimark, envisions a mixed-use facility at the city market campus. The project will add residential, office and retail space to the downtown plaza. It will include demolishing the east tower of City Market and replacing it with an 11-story, 60-unit family living space, as well as offering more than 22,000 square feet of retail space and 8,000 square feet of office space. The project will also include an upgrade of the 20-story Gold Building into 350 apartments, as well as an expansion of the market itself.

    Polk Stables redevelopment

    When the Polk Sanitary Milk Company opened in 1906, they built a three-story stable on 16th Street, with 21,000 square feet of space for their mules. The building had now become dilapidated and had to be torn down. In its place is a new development that will bring together makers, co-working spaces for entrepreneurs, and artists—all under one roof. The project is located in Indianapolis at 16th Street & the Monon Trail, which is both a Federal Promise Zone and an Opportunity Zone. The redeveloped Polk Stables will have space for COhatch co-working spaces; a maker’s space with 3D laser printing and cutting equipment; and artist studios.

    The Stutz redevelopment

    The Stutz redevelopment project covers 441,000 square feet of leaseable space on 3.8 acres. It spans 7 buildings between 10th and 11th streets and Senate and Capitol avenues in downtown Indianapolis. The iconic four-story factory building with sawtooth glass-pane rooflines is easily accessible from I-65 and I-70, putting it within walking distance of many of the city’s most popular attractions. Inside, there will be retail and gallery space, as well as a museum honoring the cars made by Stutz. Phase One of the project is now under construction, with completion scheduled for early 2023.

    Block 20 development

    Block 20 is a mixed-use development consisting of apartments and retail space, which will be built next to the Athenaeum and Rathskeller. The project received support from the Athenaeum Foundation, City of Indianapolis and State of Indiana. The project will consist of 78 apartment units, 5,500 square feet of commercial space, and 255 parking spaces. Public art would be displayed throughout the development.

    CSX Building redevelopment by Boxcar Development LLC

    Boxcar Development LLC is proposing to develop a mixed-use development at the site of the former CSX building across the street from Gainbridge Fieldhouse in downtown Indianapolis. The project would include a 26-story tower with 254 apartments, nearly 4,800 square feet of retail space and a 700-space parking garage. The second tower would be 16 stories featuring 225 hotel rooms and 18,000 square feet of retail space. The project is led by Herb Simon, who also owns the Indiana Pacers.

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    Indianapolis Real Estate Market Trends & Statistics 2023

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