Market Review

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• Market Review

Metro population:

2.1 m

Median Home Income:

54,000 dollars

Unemployment rate:

3.3%

Median House Price:

119,000 dollars

Median monthly rent:

1,133 dollars

With a metro area of ​​nearly two million people, Indianapolis is the second largest city in the Midwest and the 14th largest in the US. The city has poured billions of dollars into revitalization and is now ranked among the best cities according to Forbes.

As a city of about 850,000 people, Indy has long been known as a center for the production of air conditioners, cars, auto parts and more. However, like most US cities, Indy's manufacturing industry has declined greatly, but, they haven't given up. In fact, they've done just the opposite. Over the past decade, the city has steadily and quietly become a national center for new technology.

Today, Indianapolis is home to over 150 technology companies, including Salesforce, Angie's List, MOBI, and an organization called TechPoint that aims to promote and accelerate the growth of Indiana's technology community.

Some of the factors that make indie attractive to technology companies include low cost of living, limited government regulation and a steady stream of qualified candidates from a number of local (and prestigious) universities. In fact, indie offers technology workers a much more lucrative life compared to the East and West coasts. For example, a tech worker who earns $ 100,000 a year in Indianapolis would have to earn $ 272,891 to get the same standard of living in San Francisco. [Bestplaces .net].

Why invest here?

Indianapolis still offers great buy-and-hold investment real estate opportunities today. This is especially true for investors who want to invest in a thriving technology community, where it is still possible to acquire properties that provide positive cash flow at prices that are well below market value - prices ranging from $70,000 to $130,000.

• Trends

Overview Housing market trends Trends in the population employment Conclusions Overview

Indianapolis Trends and Statistics 2018-2019

In this section you will learn about the key factors that make Indianapolis one of the most powerful real estate markets today, including: affordability, cash flow, population growth and job growth.

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Sources of information :

• https://www.zillow.com/indianapolis-carmel-anderson-metro-in_r394705/home-values/
• Additional data from the Nadlan Group network:
• https://factfinder.census.gov/
• https://www.deptofnumbers.com/employment/indiana/indianapolis/

Housing market trends

The property values ​​in Indianapolis are much lower than in many other cities across the United States today.

• As of January 2018, the median price of single-family homes with 3 bedrooms in the Indianapolis metro area was $ 143,000. This is about 29% lower than the national average of $ 202,000.
• In neighborhoods where Nadlan Group members invest, the median price of 3-bedroom homes in Indianapolis was $108,000 in January 2018. That's 41% below the national average of $202,000.
• This shows us that property values ​​in Indianapolis are much lower than other cities across the United States today, especially in areas where members of the Nadlan Group invest.

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In some Indianapolis neighborhoods you can earn a significant monthly income.

• In January 2018, the median monthly rent for homes in Indianapolis was $1,208, which is 0.84% ​​of the purchase price of $143,000. This is higher than the national purchase and rental ratio of 0.71%.
• In the neighborhoods where Nadlan Group members invest, the median monthly rent for 3-bedroom homes was just $1,133, which is 0.96% of the $108,000 purchase price.
• This shows us that the Indianapolis metro area offers investors the opportunity to make significant monthly cash flow, especially in areas where Nadlan Group members invest.

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Home values ​​in Indianapolis have risen steadily over the past six years.

• In January 2012 the median price of 3 bedroom homes in Indianapolis was $113,000. This means that in the last six years (January 2012 to January 2018), 3 bedroom homes in Indianapolis have appreciated in value by 19%. During the same period, 3-bedroom homes increased by 41% nationwide.
• Although Indianapolis home prices have not appreciated at the same or faster rate than the national average, they have risen consistently. It's a good sign that Indy isn't affected by the wild appreciation or depreciation fluctuations that exist in many other US cities today. This shows us that Indianapolis is a more stable market, which means investing here is probably less risky.

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The median monthly rent in Indianapolis has risen since 2012, but not as much as in other U.S. cities.

• Between January 2012 and January 2018, the average rent for 3-bedroom homes in Indianapolis rose by 15%. Nationally, rents rose by 17% during this period.
• This shows us that rental prices have not risen like other cities in the US in the last five years. However, 12% is still a solid increase and another good indication that the Indianapolis real estate market is more stable than other markets today.
• Although Indianapolis home prices and rents are not appreciating at the same, or higher, rate than the national average, they have grown consistently. This means that Indy is not affected by the wild fluctuations in value or depreciation that exist in many other cities in the US today. These are all good signs that Indianapolis is a more stable market, which means investing here may be less risky.

Trends in the population

The Indianapolis population is growing faster than many other U.S. markets today.

• Since 2010 the Indianapolis population has grown by 7%. This is a rapid growth of 36% from the national average of 5%.
• This shows us that the Indianapolis population is growing faster than many other markets in the US today. One thing to note is that this rapid growth is not new to Indianapolis. In fact, the indie population has grown by more than 36% since 1989.

employment

Indianapolis has created more jobs than other cities in the United States.

• In the past year the number of jobs in Indianapolis has increased by over 2%, which is higher than the national growth of 1.7%.
• What these numbers don't reveal is that Indianapolis is also one of the nation's fastest-growing technology and bioscience centers. In fact, it is the only American metropolis that has special concentrations of employment in all five biological sectors: agricultural raw materials and chemicals; dissemination related to biological science; Medicines; medical devices and equipment; Research laboratories and medical tests.
• If that's not enough, Indy is home to TechPoint's headquarters, an organization whose mission is to promote and accelerate the growth of the Indiana technology community through various programs and initiatives.
• All of these are good signs that Indianapolis will continue to grow - both in technology companies and in employment opportunities - in the foreseeable future.

Conclusions

Indianapolis pays off

• In neighborhoods where Nadlan Group members invest, the median price of 3-bedroom homes in Indianapolis was $108,000 in January 2018. This is 41% below the national average of $202,000.
• This shows us that property values ​​in Indianapolis are much lower than other cities across the United States today, especially in areas where members of the Nadlan Group invest.
  
  

Indy has a strong cash flow opportunity

• In the neighborhoods where Nadlan Group members invest, the median monthly rent for 3-bedroom homes was just $1,133, which is 0.96% of the $108,000 purchase price. This is higher than the national average of 0.71%.
• This shows us that the Indianapolis metro area offers investors the opportunity to make significant monthly cash flow, especially in areas where Nadlan Group members invest.

Indianapolis has population growth and job growth

• Since 2010, the population of Indianapolis has grown by 7%. This is 36% faster growth than the national average of 5%.
• This shows us that the Indianapolis population is growing faster than many other markets in the US today. One thing to note is that this rapid growth is not new to Indianapolis. In fact, the indie population has grown by more than 36% since 1989.
• In the past year, the number of jobs in Indianapolis has increased by more than 2%, which is higher than the national growth of 1.7%. Even though it is slightly below the national average, it is still solid growth. In addition, Indianapolis is actually one of the fastest growing technology and biology centers in the country.
• All of these are good signs for investors looking to invest in a growing but more stable real estate market.

In indie there is an opportunity for strong capital growth

• Over the past 6 years, 3 bedroom homes in Indianapolis have appreciated 19% in value. During the same period, 3-bedroom homes increased by 41% nationwide.
• Between January 2012 and January 2018 the average rent for 3-bedroom homes in Indianapolis rose by 15%.
• Nationally, rents rose by 17% during this period.
• Although Indianapolis apartment prices and rents are not estimated at the same rate, or higher, than the national average, they have grown consistently. This means that indie is not affected by the fluctuations in value or depreciation that are plaguing many other cities in the US today. These are all good signs that Indianapolis is a more stable market, which means investing here may be less risky.

• Large employers

• News

• "#3 Best City for First Time Home Buyers" - Business Insider
• "# 6 the elite market in the ownership of houses for rent" - The Street
• "Rated 7th in the city to buy for the best rental value" - CNBC
• "Ranked 224th lowest cost of living" - Business Insider

• Learning resources

• Meeting with our team

Interested in investing in Indianapolis? Arrange a strategy conversation with our team and we will be happy to match a suitable investment for you.

Strategic investment meeting in Indianapolis with the Nadlan Invest team

Have you already had a strategy call? You are invited to visit our deals website

• Sample assets

Strategic investment meeting in Indianapolis with the Nadlan Invest team

Sample assets can be viewed at the strategy meeting

• Friendships

Lior Lustig

CEO - Nadlan Group Investor Forum

• Send a response by email
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Lior Lustig is an experienced real estate investor active in the field in Israel and the USA since 2007. Lior has extensive experience in the purchase and management of single and multi-family properties.
Lior currently manages the Nadlan Group Real Estate Investors and Owners Forum. Lior is versatile in a wide variety of investment markets in the United States and provides solutions to investors through the company.