Indianapolis Indiana Rental Market Update March 2023
Hey, guys. Mike Taylor, Broker Owner, Red Door Property Management. So, today we are talking about the Indianapolis Market report for March of 2023. So kind of wrapping up what we call the end of the winter season and heading into spring, the most leasing activity that we're heading into. But today we're looking at March Wrapping that up, and specifically Indianapolis. So unfortunately, there's not a lot of great news coming out of Indianapolis right now. I'm not sure what's going on, but we did see a downward trend from its peak in August in terms of average monthly rent, that has level off a little bit. So we're not seeing this decline anymore, but days in the market are up. And so we need to keep an eye on this Indianapolis market. So it is different from the other areas that we do our market reports on, so please check those out. But the Indianapolis market is a little bit different. So let's take a look at the numbers and see what happened in March of 2023.
Active Homes
Okay, let's take a look at some numbers. Do a deep dive on what's going on for the rental market for Indianapolis in March of 2023. Starting up here in the top left number of active homes, 1714. I went back and reviewed the last several months. That's pretty consistent with what we've been seeing in terms of inventory. So no huge change there, either up or down. It's actually a little bit down from a month or two ago. So as I mentioned in the intro, there's not super awesome numbers coming out of here, but it's not explained away by a huge influx of homes over the last month or two that stayed fairly consistent.
Median Rental Price Over Time
So if we jump into this middle one, this is the price over time. And I know you can't see it here, we got to work on this graphic, but this is 2022. As I mentioned, we peak in August. Pretty steep decline towards the end of the year. Then we do a slight recovery. And actually we're doing a little bit more of a decline. I mean, this is pretty small. It's pretty consistent. It's almost flat, basically.
Average Rent
So if you look down here, bottom left, average rent, 1381 for March of 2023. That is down 1.36% from last year and then down just a percent from last month. So not the trend that we want to see. And actually, again, you can kind of always get a little bit of a sneak peek into April. April looks like it's going to go down even more. So not heading in the right direction, which is kind of weird because if you look at some of the other reports that we do, Fishers Westfield I think we're doing one on Brownsburg this month. Most, if not all of the other kinds of submarkets of Indy are seeing the exact opposite. So not sure what's going on here in Indianapolis, but definitely a little bit of a concerning trend, to be honest with you.
Average days on the market
And to go along with that, average days on the market have jumped to 94 days on the market. That's a lot, as you can see. That's a 161% increase from last year and then a 56% increase from February. So this information is pulled from the Mibor database, which is our local MLS. A little bit less inventory to pull from, but it still should be pretty accurate. So I don't know what happened here. That's a big jump from February to March .I don't know what's going on there. I'll have to just keep an eye on this one because that seems a little bit odd, to be honest with you. So we'll keep an eye on that. But that's 90 days on the market is a lot. We should be sub.30 would be kind of like normal. So right now in Indiana, it's more than triple that. So that's also concerning.
Median Rental Price Over Time
And then this graphic we always include. This is just to show you kind of where the activity is happening in the rental market. And so indeed, it's like basically 1000 to 2000 is kind of the bulk of the market that is obviously reflective of the average rent, let's just call it 1400.So that's where the bulk of the activity is occurring.
Average Sales Price
One thing that we did, we got rid of, we used to talk about absorption rate and because that information is also pulled from the Mibor database, it made sense in Indy. But in some of the other submarkets, there weren't a ton of homes that it was pulling from. So we felt that the number might be skewed a little bit. So what we decided to do was to pull in just an average sales price so that you could kind of see where the homes are selling for. So if you're looking to purchase an investment home, you can see kind of where the averages lie out. So this is across all of Indianapolis. There's no segmenting this out at all, but the average sales price for all of Indianapolis is $218,327.So just to kind of give you an idea of the home values that are occurring right now in the Indianapolis market.
So that's a wrap for Indy. Not great news, but we're getting into the leasing season, so we will see what occurs. Also check out the other ones that we're doing because Westfield, Fishers, Noblesville in Brownsburg all have a vastly different story. So check those posts out as well and we'll see you next month.
