Rental Market Performance
Consistent Rent Growth
Indianapolis continues to rank as one of the Midwest’s most stable and steadily growing rental markets. Over the past three years, metro-wide rent growth has held in the 3%–6% annual range, outperforming many peer cities with larger development pipelines and higher volatility.
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Citywide rent growth: ~3%–6% annually (2022–2024)
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East-side submarket: +6.8% over the last 12 months (source: CoStar)
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Metro ranking: Indianapolis has regularly appeared in lists of “Top Midwest Markets for Stable Rent Growth” from sources such as Yardi Matrix, ApartmentList, and CoStar.
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Yardi Matrix Market Insight: https://www.yardimatrix.com
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Apartment List Rent Data: https://www.apartmentlist.com/research/category/data
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High Occupancy Levels
Demand has remained extremely consistent across the metro.
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Citywide occupancy: 94%–96%
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Workforce housing: Often 95%+ due to low supply and strong affordability relative to income.
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CoStar Market Analytics (Indy Multifamily): https://www.costar.com
This occupancy stability has held even through recent national fluctuations in multifamily performance.
Supply, Demand, and Market Drivers
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Limited new workforce-housing construction (high construction costs + land constraints).
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Strong in-migration from Illinois, California, New York, and coastal markets seeking lower cost of living.
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Population growth:
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Marion County is growing steadily after years of stability.
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Hamilton, Hendricks, Hancock, and Johnson Counties remain among the fastest-growing counties in the Midwest.
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Indy Metro population stats: https://www.stats.indiana.edu
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Affordability advantage: A major driver of stable renter demand, especially in Class B/C neighborhoods.
These fundamentals underpin long-term renter demand and create a strong foundation for cash-flow-focused investments.
Indianapolis Job Market Overview
A Diverse & Resilient Economy
Indianapolis has one of the most balanced economic ecosystems in the Midwest. No single industry dominates, which creates job stability and supports a consistent renter base.
Major Employment Sectors & Anchors
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Healthcare & Life Sciences
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Eli Lilly & Co. – https://www.lilly.com
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IU Health – https://iuhealth.org
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Roche Diagnostics – https://diagnostics.roche.com
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Logistics & Distribution
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FedEx Express National Hub (second-largest globally)
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Amazon distribution facilities
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UPS regional hubs
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Indy Logistics Data: https://www.in.gov/iedc
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Manufacturing
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Allison Transmission
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Rolls-Royce North America
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Raytheon
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Technology
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Salesforce Tower (largest U.S. office footprint outside SF)
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Infosys U.S. Education/Innovation Hub
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Genesys
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Education & Research
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IUPUI / IU Indianapolis
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Butler University
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Ivy Tech Community College
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Why Companies Invest in Indianapolis
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Central U.S. distribution hub
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Low cost of living + affordable business environment
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Large, diversified workforce
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Low operational costs for employers
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Rapidly growing logistics and healthcare sectors
Major Projects Driving Growth
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$4.3B IU Health Downtown Hospital & Multi-Block Expansion
https://iuhealth.org/about/expansion -
FedEx Hub Expansion at IND Airport
https://www.fedex.com -
Ongoing logistics & warehousing development along I-70, I-65, and I-465
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IndyGo’s Purple & Blue Line transit expansions boosting corridor redevelopment
https://www.indygo.net
These economic drivers support a broad, durable renter pool across all asset classes—especially workforce housing.
Location Overview — East Indianapolis / Irvington Area
The East Side and Irvington submarkets remain highly attractive for stable, cash-flow-driven multifamily.
Key Local Advantages
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Dependable tenant demand with a large workforce tenant base
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Low eviction rates compared to other urban submarkets
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Major hospital only 2 blocks away, increasing local employment and steady rental traffic
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Close to retail, grocery, and everyday services
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Immediate access to I-70 (on-ramp just minutes away) for quick commutes to downtown, airports, and logistics corridors
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Walkable pockets, including Irvington’s historic core
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Historically strong performance for FS Houses properties in the surrounding neighborhoods
Neighborhood Dynamics
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Long-term residents + strong demand from service-sector workers
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Consistent rent appreciation due to lack of new supply
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Increasing investor interest as downtown and Near Eastside redevelopment expands eastward
Irvington and the broader East Side offer one of the best rent-to-price ratios in Marion County, making it a preferred area for investors focused on stable cash flow.