Westfield Indiana Rental Market Update January 2023

Hey, guys. Mike Taylor, broker owner, Red Door Property Management. Today I'm super excited to bring you the Westfield, Indiana Rental market report for January of 2023.Westfield continues to outperform really, Indianapolis, and I think pretty much all other sub of markets of Indianapolis. So, if you recall, last month we kind of finished up the year with our December report. We saw rental rates steady, stabilizing and kind of flatlining a little bit. But that is in contrast to other areas that were taking a pretty good decline. So even last month, as rents are stabilizing, Westfield is kind of outperforming the rest of the market in general. And again, this month we see the same thing Westfield has actually price increases where other places are seeing price decreases. So, let's take a look and see what happened in January and Westfield.

Active Homes

Okay, let's dive in and take a look at what happened in the rental market in Westfield, Indiana in January 2023.As I mentioned, we are seeing out performance of other areas in the Indianapolis market. So, there's currently 57 houses on the market in the Westfield submarket. 

Median Rental Price Over Time

But what's really exciting is this median rental price. So, you know, last year, the end of the year, we saw it kind of peak in August, which is pretty consistent with everywhere else. And then we saw it kind of comedown and flatten out here a little bit. Pretty normal for some seasonal activity. And again, it was versus Indianapolis or other areas that kind of saw crater like that. So, Westfield overall did much better. But what's super exciting is as we start the new year, look at this January over January. So, we're looking at this is 2022.This is the trend line of 2023.So we're seeing two things here. One, that January 2023 jumped up and we actually saw then a 23% increase from January of 2022, which is huge. I mean, that's, that's crazy, but it's also a seven. And that's called a half percent increase from last month, which is really, really encouraging because as I mentioned, if you check out our, our Indianapolis videos or some of the other videos that we're doing, that's actually still declining a little bit in January. And then what we're getting here, this is a little bit of a sneak peek in February. These numbers aren't finalized, but it's looking like February is going to continue the trend line of upward rents in Westfield. So that's exciting for investors in the Westfield market.

Average days on the market

Average days on the market is also good news. It's at 22 right now. So that's actually up 22% from last year and ten and a half percent from last month. But 22 is still a very reasonable average days on the market. Other areas, we are seeing 45, even 60 days in some of the submarkets that we're seeing. So, to keep it at 22 in January is really, really encouraging for the upcoming leasing season. We kind of already went over this. 

Average rent

But the average rent in Westfield is $2,095 in January. That's for the homes that released in January. So, let's call it $2,100 is your average rent. And that's up again 23% over last year and seven and a half percent over last month. 

Price Range

This bottom middle one here is just to show you where the activity is. And again, you would expect it to be right around where this average rent is. And so, it's really in between that 1500 and call it 25, 2600, few outliers here in the3000, I mean, actually gets a pretty good amount of activity in that higher range. But for the most part, if I have a house in Westfield, actually, I do, all of mine are going to be between that 1000, 502,000 503,000, maybe pushing it just a little bit so that's where the activity is.

Absorption rate

and then the absorption rate. So, this one doesn't make a ton of sense to me because the 2.8 is actually kind of high. So, absorption rate is if we stop putting homes on the market, how long is it going to take to run through that inventory? So, we're almost at three months. That's high compared to other submarkets. I would just put a caveat on that. So, we pulled this information from a variety of sources. This particular data set comes from Mibor, the BLC or the MLS. So, the caveat is there's not a ton of data in there.So this might just be a little bit of a Blip, an anomaly due to a relatively low data set. So, we'll keep an eye on it. I'm not super concerned about it because all of the other metrics that we're looking at, days on the market, rent, average rental price, all of those are pointing towards positive trends for Westfield. 

So, there you have it. I see good things for Westfield for 2023.If I'm an investor, I am still currently looking in this market. So, take a look at our other videos so you can kind of see how this does compare to Indianapolis. We do one for Fishers, we do one for Noblesville, we did one for Anderson this month. So, you can take a look at how Westfield doing in comparison to the other submarkets of Indianapolis because it does make a difference in the different submarkets. So, take a look at those, please. Like our channel, subscribe to our channel to stay up to date on this, as well as other property management tips and tricks in the Indianapolis area.