Amid high inflation and continued economic uncertainty, the Indianapolis multifamily market started 2023 on a positive note. Somewhat in line with national trends, rent growth decelerated, with average rates up 0.1 percent on a trailing three-month basis through February, to $1,203. Meanwhile the national figure declined by 0.1 percent.
The metro’s economic growth did not catch up to national levels, as Indianapolis’ job market expanded by 2.5 percent in 2022, 120 basis points below the U.S. rate. However, the unemployment rate in the metro stood at 2.8 percent in January, 60 basis points lower than the national figure, according to preliminary data from the Bureau of Labor Statistics. Indianapolis added 18,700 jobs last year, with its largest sector—trade, transportation and utilities—leading growth with 9,200 jobs gained, or a 3.5 percent expansion. The metro continued to attract large investments that aim to revitalize some areas of the city—Adult & Child Health, Colliers, Innovcare and TWG teamed up to announce a $75 million master-planned development. Four vacant buildings are expected to be converted into affordable multifamily units, retail space and a 40,000-square-foot medical office building.
Investment activity reached a new record high in 2022, with $2.2 billion in multifamily sales registered—up 57.1 percent year-over-year.
Read the full Yardi Matrix report.
