Good news for anyone thinking about investing in the Indianapolis real estate market. Forbes has recently called it out as one of the best housing markets for 2021. It’s easy to understand why. Properties are still affordable, especially when you compare this market to larger Midwest cities, and investors can expect to earn some potentially impressive returns in both the short and long term.
Indianapolis is enjoying a strong economy, lots of population growth, and a high quality of life. If you’re interested in starting out as a real estate investor or you’d like to add to a growing portfolio, take a look at what’s available in Indianapolis. We expect a strong market for 2021, and we probably won’t be able to keep this area a secret much longer.
Population and Demographics in Indianapolis
Around two million people live in the metropolitan Indianapolis area, and it only ranks behind Chicago and Columbus when we’re looking at cities in the Midwest. Investors will find that the per capita income in Indianapolis hovers at around $35,000 a year, and the median income is over $60,000 a year. This makes for a stable tenant pool of employed, qualified renters who are looking for well-maintained homes.
Economic Growth in Indianapolis
As the country begins to recover from the pandemic, there’s a national push to reduce the spiking unemployment rate. In Indianapolis, there has been less suffering than in other large markets. There are a lot of employment opportunities and the tech sector is actually growing here. According to the Bureau of Labor Statistics, the following sectors are growing in the Indianapolis economy:
Construction
Trade
Transportation
Financial services
Professional and business services
This is good news for investors who are looking for a growing market with great infrastructure.
Indianapolis Has a Strong Rental Market
The rental market in Indianapolis is strong, and it seems intent on staying strong throughout 2021.
Out-of-investors are especially interested in Indianapolis, where a smaller investment will still generate some profitable returns. Less than half of the occupied homes in Indianapolis are rented out. There’s some room for growth, especially as demographics lean towards millennial renters.
The average rent is now at around $1,200 for a well-maintained single-family home. We expect that to grow throughout 2021, which means owners will have the opportunity to earn more on the investments they already own and plan to buy.
If you’re wondering where to buy, consider neighborhoods like North Central Indianapolis, Downtown Indianapolis, and Broad Ripple where you can earn $2,000 or more in rent. Those opportunities aren’t as numerous as those in more affordable neighborhoods. The market is diverse, and it’s possible to find something that fits your ideal price range and rental rate.
There are a lot of good reasons to buy investment property in Indianapolis. We anticipate a strong and successful rental market for 2021, and we’d be happy to help you with all of your property management needs. Whether you’re thinking about investing or you already have a property that needs to be leased and managed, please contact us at Red Door Property Management.
