Indianapolis, IN Real Estate Market Trends & Analysis 2019

Key Takeaways

  • The Indianapolis real estate market, not unlike many other secondary cities, has benefited from its overpriced neighbors.
  • Real estate in Indianapolis has appreciated at nearly twice the rate of the national average in the last year.
  • Indianapolis real estate investing should be able to take advantage of a trifecta of beneficial indicators: low prices, strong economies, and a growing population.

The Indianapolis real estate market has taken the momentum from today’s hottest cities and used their success to its advantage. The higher prices of primary metropolitan areas like Chicago and Pittsburgh, for example, have driven more potential homebuyers to search for cheaper alternatives. As a result, real estate in Indianapolis has benefited primarily from three fundamental indicators: low prices, strong economies, and a growing population. For all intents and purposes, the Indianapolis real estate market has done really well for itself in recent history, and there’s nothing to suggest things will change anytime soon. Likewise, real estate investors who buy sooner rather than later may be able to ride a tailwind of opportunity.

Indianapolis Real Estate Market Overview

  • Median Home Value: $139,200
  • 1-Year Appreciation Rate: 14.4%
  • Median Home Value (1-Year Forecast): 2.5%
  • Median Rent Price: $995
  • Median Days On Market: 63

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Indianapolis real estate investing

Median Home Price Indianapolis

In as little as one year’s time (December 2017 to December 2018), the median home value in Indianapolis appreciated by 14.4%, which was nearly twice as much as the national average. Thanks to the last 12 months, and particularly favorable market conditions in the area, the median home value in Indianapolis is now $139,200. Despite last year’s torrid appreciation rate, however, increases are expected to come back down to earth. According to Zillow, Indianapolis can expect an appreciation rate somewhere in the neighborhood of 2.5% next year. It should be noted that the drop doesn’t suggest a lull in the market, but rather a return to normalcy. The rate in which homes increased in value was unsustainable, and the tempering merely suggests the market will become more balanced.

Indianapolis Foreclosure Statistics

According to RealtyTrac, a popular real estate information company and online marketplace for foreclosed and defaulted properties, there are currently 1,285 “distressed” properties in and around the Indianapolis real estate market. More specifically, there are 1,285 homes that fit at least one of three descriptions: default, auction or bank owned. The highest distribution of these properties can be found in the following neighborhoods:

  • 46218: 1 in every 773 homes is currently distressed
  • 46241: 1 in every 840 homes is currently distressed
  • 46201: 1 in every 1,226 homes is currently distressed
  • 46221: 1 in every 1,292 homes is currently distressed
  • 46226: 1 in every 1,366 homes is currently distressed

Of the distressed properties identified by RealtyTrac, the majority (57.1%) are either already up for auction, or are expected to be at some point in the near future. As their names suggest, auction homes can be bought at auction, when the lenders that repossessed them originally look to rid themselves of non-performing assets. As such, these homes represent a great opportunity for Indianapolis real estate investors, or anyone looking to acquire a property at a discount.

The remaining distressed homes in Indianapolis are primarily made up of bank-owned properties. Otherwise known as REOs (real estate owned), bank-owned homes are essentially the assets that didn’t sell at auction. Therefore, it may be wise for Indianapolis real estate investors to take a trip to their local bank or lender to identify any assets they may be willing to part ways with—at a discount, nonetheless.

Indianapolis Real Estate Investing

The Indianapolis real estate market looks to be on the verge of a nice breakout, as there are favorable economic conditions finally starting to work in favor of the housing industry. At the moment, however, there’s one indicator investors should be particularly excited for: affordability. The Indianapolis real estate market is considerably cheaper than its primary neighbors. As a result, Indianapolis has seen demand increase in conjunction with prospective buyers looking to trade the high prices of Chicago and Pittsburgh in for the more modestly priced Indianapolis. Even after last year’s impressive appreciation rate, people are still choosing Indianapolis, which bodes well for investors in the area. The increase in demand should continue, effectively allowing investors to move assets at a reasonable pace.

Indianapolis Real Estate Market Summary

The Indianapolis real estate market has had an impressive run for the better part of a decade. Perhaps even more importantly, however, the city has enjoyed a particularly encouraging 12 months. Thanks to low prices, a strong economy, and a growing population, Indianapolis has found itself at the center of investors’ attention. That said, appreciation rates are already starting to temper and demand is increasing. Investors that get in sooner rather than later may find themselves in a better position than those who wait.

Have you thought about investing in the Indianapolis real estate market? If so, what are you waiting for? We would love to know your thoughts on real estate in Indianapolis in the comments below.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either expressed or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.
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