Westfield Indiana Rental Market Update December 2022
Hey, guys. Mike Taylor, broker owner, Red Door Property Management. Today I am excited to bring you our Westfield, Indiana Rental market report for December of 2022.So Westfield is one of my personal favorite submarkets of the Indianapolis area. I own several homes there, so I feel really good about this market report today. So, we are seeing some seasonality take place. I mean, this is a December market report, we always see activity kind of at its lowest in the December and January range. However, we are seeing some really good rent increases. Rents have come off their peaks a little bit, but I have reason to believe that they're flattening out. And I'm hopeful that as we get into the warmer months of February, March, April, May, and we see an increase in leasing activity, hopefully we're going to see those rents start to creep back up. So, I'm very optimistic for the Westfield rental market for 2023. So let's take a look at the numbers and see what happened in December of 2022.
Active Homes
Okay, let's jump into the numbers for the Westfield, Indiana Market report for December of 2022. Let's find out what's going on here. Again, as I mentioned, Westfield is kind of one of my favorite submarkets. I think it's a great community with good schools, the average rent is great, the appreciation is good. And overall, it's just a quality community to own an investment home in. And it's still relatively affordable even within Indianapolis, but especially nationwide, it's still very affordable to own a home here. So, let's jump into the numbers. So, there are 64 homes on the market in Westfield right now. Again, we put some perspective on that by talking about absorption rate.
Absorption Rate
The absorption rate is the amount of time in months, 2.5 months is the absorption rate, the amount of time and months that it would take to run through the current inventory. So, if we didn't put any more homes on the market, it would take two and a halfmonths to run through these 64 homes. At the current pace. December, things are slow. So, as we get into these, start doing these in June and July, you'll see the number of active homes will group and probably that absorption rate will go down. But definitely something to keep an eye on if we take a look at the bottom left average rent.
Average Rent
So average rent for Westfield in December of 2022 is 1950.That actually represents a slight decrease over last month, November of 2022, two and a half percent decrease and a 16% increase over December of 2021.You kind of get a little bit more perspective if you look at it over time. So that's what this graphic is for here.
Median Rental Price Over Time
This is to take a look at the average rental price in Westfield over time. And it's had a great run. This has been a great year for rental everywhere, but especially in Westfield. So, you see it kind of take-off from down here. It peaks in August and then there's a bit of a slide. It's gradual for sure. If you watch our Indianapolis market report, you will see it's a different story. This line just kind of nosedives through December. So, Indianapolis is not faring as well right now. The past several months has seen pretty significant decreases in average rent. We are seeing decreases. However, it's like I said, a lot more gradual in Westfield. I believe that it has probably I don't know if it's bottomed out, but I think it's on its way to be done. Correcting. I think this is the correction here and I have reason to believe that January we're going to see an increase in your average rents again to kind of get back up to these numbers here. So, I'm thinking that as the year goes on, February, March, April, as we get a little warmer, a little bit more into leasing season, we're going to start to see this creep back up. That's my speculation, but don't know for sure. But in comparison to the other market reports that we do, Westfield actually is one of the better ones in the decrease that we're seeing. Everybody had a run up and almost everybody had a run up and almost everybody has seen price corrections after August. So, some of its seasonal, but there's definitely more at play than just seasonality here. So hopefully the correction is done and we're on the way back up, but we'll have to stay tuned for that.
Price Range
And then the last graphic that we want to talk about here is price range. So, this is just kind off or your information, for education. If you're thinking about purchasing a home or putting a home into use as a rental, where are the transactions happening? And in Westfield, it's kind of like in that 1600 to like 2700-ish range. Right around 2000 is probably about the sweet spot in Westfield. That's your average rent or your median rent. So that makes a lot of sense that that's where the most activity is.
So that is the market report for December of 2022 for Westfield. Good run up in prices over this year, a little bit of a correction. Hopefully we're done with that and looking forward to some positive gains on the median rental price in January, February and March. Take a look at our other videos. We do them on Indianapolis. We do them on Westfield, Fishers and Avon. This year, everyone has a slightly different story. Some are vastly different than the other ones. So please take a look at those other market reports to continue to educate yourself on the Indianapolis market.
