The curse of increased Days on Market (DOM) has made a fierce comeback in Indianapolis. In Quarter 1 of 2024, it took an average of 59 days (yes, 59!) to lease a home in Indianapolis. This echoes the less-than-ideal trends seen in Q1-Q3 of 2023.
This serves as a stark reminder that investors are struggling to adapt to the changes we’re seeing in rental market pricing. March saw an average DOM in mid 50’s, the lowest of the quarter. While we’re cautiously optimistic about this improvement carrying into the warmer months, past experiences have taught us to approach such shifts with tempered expectations.
The avererage rent in Indianapolis during Q1 was $1,477, a decrease from Q4 of 2023 of $41. Again, this could indicate that investors are becoming more flexible with price.
Over the past two years, Indianapolis has maintained an average rent around the $1,400 mark, with a slight deviation in Q4 of 2023 when it peaked in the low-$1500’s, albeit during a slower rental period. This stability underscores the importance of keeping rental rates competitive and avoiding steep price hikes that could deter potential Tenants. We are no longer in a period where you can raise rates by the hundreds and expect shoer vacancy periods.
The number of homes leased in Indy is remaining pretty steady at 572. The last three quarters have all been in the 570’s, proving demand is still there, and it is very consistent. On top of that, from February to March we saw an increase in 60 more homes being leased in Indianapolis, another hopeful glimmer for a warm-up in the coming months.
