Indianapolis Trends & Statistics 2018-2019

In this section, you’ll learn about the top factors that make Indianapolis one of the strongest real estate markets today, including: affordability, cash flow, population growth, and job growth.

Data Source:

• https://www.zillow.com/indianapolis-carmel-anderson-metro-in_r394705/home-values/
• Real Wealth Network Affiliate Data
• https://factfinder.census.gov/
• https://www.deptofnumbers.com/employment/indiana/indianapolis/

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

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

In some Indianapolis neighborhoods, it is possible to make significant monthly income.

• In January 2018 the median monthly rent 3 bedroom homes in Indianapolis was $1,208, which is 0.84% of the purchase price of $143,000. This is higher than the national purchase-to-rent ratio of 0.71%.
• In the neighborhoods where RWN members invest the median monthly rent 3 bedroom homes was only $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 the areas where RWN members invest.

Indianapolis home values have been steadily rising over the last six years.

• In January 2012, the median price of 3 bedroom homes in Indianapolis was $113,000. This means that, in the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Indianapolis have appreciated by 19%. During the same period, 3 bedroom homes increased by 41% nationwide.
• Although Indianapolis’ home prices haven’t appreciated at the same, or faster, rate than national average, they have been consistently rising. This is a good sign that Indy isn’t affected by the wild appreciation or depreciation swings that plague many other U.S. cities today. This shows us that Indianapolis is a more stable market, which means investing here is likely less-risky.

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

• Between January 2012 and January 2018, the average rent for 3 bedroom homes in Indianapolis increased by 15%. Nationally, rents increased by 17% during this period.
• This shows us that rental prices have not risen as much as other U.S. cities in the last five years. That said, 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 aren’t appreciating at the same, or higher, rate than national average, they have been consistently growing. This means that Indy isn’t affected by the wild appreciation or depreciation swings that plague many other U.S. cities today. These are all good signs that Indianapolis is a more stable market, which means investing here is likely less-risky.

Indianapolis’ population is growing at a faster rate than many other U.S. markets today.

• Since 2010, Indianapolis’ population has increased by 7%. This is 36% faster growth than the national average of 5%.
• This shows us that Indianapolis’ population is growing at a faster rate than many other U.S. markets today. One thing to note is, this rapid growth isn’t new for Indianapolis. In fact, Indy’s population has grown over 36% since 1989.

Indianapolis has created more jobs than other U.S. cities.

• In the past year, the number of jobs in Indianapolis has grown by over 2%, which is higher than the national job growth of 1.7%.
• What this data doesn’t reveal is that Indianapolis is also one of the fastest growing hubs for technology and bioscience in the nation. In fact, it’s the ONLY U.S. metropolitan area to have specialized employment concentrations in all five bioscience sectors: agricultural feedstock and chemicals; bioscience-related distribution; drugs and pharmaceuticals; medical devices and equipment; and research, testing, and medical laboratories.
• If that wasn’t enough, Indy is also home to the headquarters of TechPoint, an organization whose mission is to promote and accelerate the growth of Indiana’s tech community through various programs and initiatives.
• These are all good signs that Indianapolis will continue to grow – both in tech companies and employment opportunities – for the foreseeable future.

Indianapolis is Affordable

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

There’s a Strong Cash Flow Opportunity in Indy

• In the neighborhoods where RWN members invest the median monthly rent 3 bedroom homes was only $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 the areas where RWN members invest.

Indianapolis has Population Growth & Job Growth

• Since 2010, Indianapolis’ population has increased by 7%. This is 36% faster growth than the national average of 5%
• This shows us that Indianapolis’ population is growing at a faster rate than many other U.S. markets today. One thing to note is that this rapid growth isn’t new for Indianapolis. In fact, Indy’s population has grown over 36% since 1989.
• In the past year the number of jobs in Indianapolis has grown by over 2%, which is higher than the national job growth of 1.7%. Although this is a little below the national average, a it’s still solid growth. Plus, Indianapolis is actually one of the fastest growing hubs for technology and bioscience in the nation.
• These are all good signs for investors looking to invest in a growing, but more stable real estate market.

There’s a Strong Equity Growth Opportunity in Indy

• Over the last 6 years (Jan 2012 to Jan 2018), 3 bedroom homes in Indianapolis have appreciated by 19%. 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 increased by 15%.
• Nationally, rents increased by 17% during this period.
• Although Indianapolis’ home prices and rents aren’t appreciating at the same, or higher, rate than national average, they have been consistently growing. This means that Indy isn’t affected by the wild appreciation or depreciation swings that plague many other U.S. cities today. These are all good signs that Indianapolis is a more stable market, which means investing here is likely less-risky.