Indianapolis Real Estate Market 2021

Indianapolis Real Estate Market Trends & Statistics 2021

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.

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Data Sources:

• https://www.zillow.com/
• RealWealth Property Team Data
• https://factfinder.census.gov/
• https://www.deptofnumbers.com/

Property values in Indianapolis are much lower than many other cities across the United States today.

• As of 2020, the median price of average homes in the Indianapolis metro area was $193,000. This is 24% lower than the national average of $254,000.
• In the neighborhoods where RealWealth members invest, the median price of average homes in Indianapolis was $125,000 in 2020. This is 51% lower than the national average of $254,000.
• This shows us that property values in Indianapolis are much lower than many other cities across the United States today, especially in the areas where RealWealth members invest.

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In some Indianapolis neighborhoods, it is possible to make significant monthly income.

• In 2020, the median monthly rent of average homes in Indianapolis was $1,255, which is 0.65% of the purchase price of $193,000. This is slightly below the national purchase-to-rent ratio of 0.68%.
• In the neighborhoods where RealWealth members invest, the median monthly rent for average homes was $1,100, which is 0.88% of the $125,000 purchase price.
• This shows us that the Indianapolis metro area offers investors the opportunity to make significant monthly cash flow, especially in the areas where RealWealth members invest.

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Indianapolis home values have been steadily rising over the last six years.

• In 2014, the median price of average homes in Indianapolis was $139,251. This means that, in the last 6 years (2014 to 2020), average homes in Indianapolis have appreciated by 38%. During the same period, average homes increased by 36% nationwide.
• Indianapolis’ home prices are appreciating at a slightly faster rate than the national average. This is a good sign that Indy isn’t affected by the wild appreciation or depreciation swings that plague many other U.S. cities today. This shows us that Indianapolis is a more stable market, which means investing here is likely less-risky.

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The median monthly rent in Indianapolis has increased since 2014, but not as much as other U.S. cities.

• Between 2014 and 2020, median rent for average homes in Indianapolis increased by 23%. Nationally, rents increased at the same rate during the same period.
• This is another good indication that the Indianapolis real estate market is growing and likely more stable than other markets today.
• Indianapolis’ home prices and rents are appreciating at the same, or higher, rate as the national average. These are all good signs that Indianapolis is a more stable market, which means investing here is likely less-risky.

Indianapolis’ population is growing at a faster rate than many other U.S. markets today.

 

• Since 2010, Indianapolis’ population has increased by almost 10%. This is 57% faster growth than the national average of 6%.
• This shows us that Indianapolis’ population is growing at a faster rate than many other U.S. markets today. One thing to note is, this rapid growth isn’t new for Indianapolis. In fact, Indy’s population has grown more than 36% since 1989.

Indianapolis has created more jobs than other U.S. cities.

• In the past year, the number of jobs in Indianapolis has decreased by over 3.3% due to COVID-19. Nationally, job growth decreased by 6%, which means that Indianapolis fared 45% better than the rest of the country.
• Indianapolis is also one of the fastest growing hubs for technology and bioscience in the nation. In fact, it’s the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.
• Indy is also home to the headquarters of TechPoint, an organization whose mission is to promote and accelerate the growth of Indiana’s tech community through various programs and initiatives.
• These are all good signs that Indianapolis will continue to grow – both in tech companies and employment opportunities – for the foreseeable future.

Indianapolis is Affordable

• In the neighborhoods where RealWealth members invest, the median price of average homes in Indianapolis was $125,000 in 2020. This is 51% lower than the national average of $254,000.
• This shows us that property values in Indianapolis are much lower than many other cities across the United States today, especially in the areas where RealWealth members invest.

There’s a Strong Cash Flow Opportunity in Indy

• In the neighborhoods where RealWealth members invest, the median monthly rent of average homes was $1,100, which is 0.88% of the $125,000 purchase price. This is significantly higher than the national average of 0.68%.
• This shows us that the Indianapolis metro area offers investors the opportunity to make great monthly cash flow, especially in the areas where RealWealth members invest.

Indianapolis has Population Growth & Job Growth

• Since 2010, Indianapolis’ population has increased by 9.6%. This is 57% faster growth than the national average of 6%
• This shows us that Indianapolis’ population is growing at a faster rate than many other U.S. markets today. One thing to note is that this rapid growth isn’t new for Indianapolis. In fact, Indy’s population has grown over 36% since 1989.
• In the past year, the number of jobs in Indianapolis has decreased by 3.3%, which is well below the national job loss rate of 6% due to COVID-19. Plus, Indianapolis is actually one of the fastest growing hubs for technology and bioscience in the nation.
• These are all good signs for investors looking to invest in a growing, but more stable real estate market.

There’s a Strong Equity Growth Opportunity in Indy

• Over the last 6 years (2014 to 2020), average homes in Indianapolis have appreciated by 38%. During the same period, average homes increased by 36% nationwide.
• Between 2014 and 2020, the median rent for average homes in Indianapolis increased by almost 23%.
• Nationally, rents increased by 23% during this period.
• Indianapolis’ home prices and rents are appreciating at the same rate as the national average and have been consistently growing. These are all good signs that Indianapolis is a more stable market, which means investing here is likely less-risky.