As anticipated, Quarter 2 has continued the trend of rising rental prices and an increase in the number of homes rented.
Rental costs throughout Q2 had an average increase from the previous quarter of $1,887 to $1,947. However, noticeable increases in cities such as Fishers, Westfield, and Anderson show increases well over $100 from the previous quarter. For example, Fishers saw an average rental price increase of $138.
We were hoping to see days on market decline with the rising interest in people looking to rent. Around half of the major cities in Central Indiana did meet this prediction, but we did see a slight increase in days on market in other top cities. Indianapolis saw a slight decrease of 55 in quarter 1 to 54 days on market in Quarter 2. Where as Carmel saw an increase of 42 to 62 between the first quarters of the year.
Rental costs appear to be rising at a slow and steady rate throughout the year with number of homes rented following the same trend. Days on market numbers are starting to vary depending on the city with demand for homes in certain areas impacting whether or not we see a drop or rise in the total days homes are remaining vacant.
T&H Realty’s Perspective
Typically, Quarter 2 into Quarter 3 has similar trends with rental marketing numbers and then we begin to see more of a change at the end of Quarter 3 into quarter 4.
Over the last quarter, we did continue to see an uptick in the number of homes leased and cost of rent. While days on market vary between cities, we are hoping to see the cities that had an increase in days on market follow the other major cities who had seen a decrease from Quarter 1.
Throughout July we should see these trends continue. However, we are a seasonal market that tends to slow later into Q3 and Q4. The only cause for concern is that this chill down season may increase days on market, meaning rent price and overall property condition should be a primary focus for investors.