Indianapolis is known for its strong industrial real estate market, but it’s the Midwestern hub’s multifamily
sector that is making news right now.
Multihousing News broke down the Yardi Matrix “Indianapolis Rebounds” report, highlighting the surging demand for multifamily housing in Indy. With steady job creation, rising wages and low cost of living, Indiana’s capital has the perfect environment for multifamily growth.
As the story points out, Indianapolis has added more than 10,000 jobs in the transportation and distribution sector over the past year, further cementing its status as a major player in the Midwest. Its centralized location makes it attractive to companies like Amazon and Walmart (as well as others), and those companies are expanding. More of the same is expected going forward.
The addition of those jobs – plus jobs in the hospitality and health care sectors – attracts workers, and those workers need somewhere to live. Indianapolis has also added downtown hotels in the past year.
Is Indianapolis a top multifamily market on par with California cities like Oakland, San Diego, San Francisco and San Jose, or even spots like Portland, Miami or Houston? Not quite. Multihousing News points out that even though multifamily demand has a record number of units coming by the end of the year, Indianapolis’ rent growth rate is expected to remain modest. However, it is clear that multifamily demand is picking up.