As we wrap up the second quarter of 2025, the Indianapolis rental market delivered what many investors hoped for: a return to seasonal normalcy.
After a semi-sluggish Q1, leasing activity picked up, Days on Market fell, and rents held relatively strong. It wasn’t a dramatic quarter, but it was an encouraging one—especially if you’ve been waiting for the market to even out.
Q2 at a Glance
Days on Market (DOM): 41 (Down from 55 in Q1 2025)
Average Rental Rate: $1,652 (Down slightly from $1,686 in Q1)
Number of Homes Rented: 382 (Up from 353 in Q1)
Leasing Activity Healthily Rebounds
In our Q1 wrap-up, we noted that Q2 typically brings a surge in rental activity, and that played out as expected.
More homes leased, and they leased faster.
DOM dropped by two full weeks.
While leasing volume didn’t explode, the increase from Q1 was clear and steady.
Homes that were priced correctly—especially those made rent-ready early in the quarter—saw the best results.
The biggest win?
Consistency.
After several years of unpredictable behavior, this quarter felt… normal. And that’s good news for investors trying to plan ahead.
Rental Rates Normalize Without Falling Off
After rents jumped sharply in Q1, they cooled slightly in Q2—down just $34 on average. But that adjustment wasn’t a sign of weakness—it was the market recalibrating after an aggressive start to the year.
Compared to Q2 2024, rental rates are still up nearly 11%, showing that long-term growth remains intact even as short-term pricing flattens.
Pro Tip: If anything, this quarter reinforced that pricing aggressively can backfire, while slightly more moderate rents often lead to quicker lease-ups and lower vacancy costs.
Looking Ahead: A Stable Summer?
As we move into Q3, the real opportunity lies in preparation and precision. Demand should remain steady, but we don’t expect a major surge.
That means investors who get ahead by turning homes quickly, pricing with strategy, and listing at the right time will continue to see success.
Listen to this Indy REI Podcast Episode for more information on the Indy Market:
