Rents are on the rise.
While that's not exactly breaking news, the second quarter rental statistics for the Central Indiana accentuate the points that 1) A lack of supply and 2) A huge demand equals 3) An increase in rents.
In fact, two key records were set during the quarter for the Indianapolis rental market. See below for the details.
Quick Central Indiana Rental Market Overview
To illustrate the point of our current supply/demand situation, average rents in Indianapolis during the second quarter came in at a robust $1,296 per month.
Yes, almost $1,300.
That's a new record and a big jump from quarter 1, which posted average rents of $1,218.
Carmel, one of Indiana's most affluent cities (and not exactly an investor's playground) also posted a new record with $2,205 per month.
Meanwhile, the number of rented homes (i.e. the supply) continues to dwindle.
Indianapolis saw just 514 homes rent through our local MLS system. That's the lowest amount of homes for any quarter since we began compiling statistics back in 2012.
The average days on market, a key indicator of demand, came in at 32 for Indianapolis, which, while not a record, is very strong for the market.
DOM for the second quarter of last year, for example, was 39.
T&H Realty Services' Perspective
The pace of our rental activity, as you might guess, has been furious.
We continue to receive an extremely high volume of applications and interest in our properties. We're also fortunate to have more homes than ever in our system, in spite of the difficulties investors face with buying new rental homes.
Our average DOM were just 16 in June and 17 in July, a number we're very proud of and one that further illustrates the big demand for quality rental property in Central Indiana.