Quarter 3 brought some welcome news to the Indianapolis rental market.
The standout statistic? There are a few, so let’s dig into things…
Days on Market (DOM) for rental properties in Indianapolis dropped to an average of 35 days. This is the lowest DOM we have seen since Q4 of 2022, and a significant turn in the market at large.
For landlords, this is excellent news. Properties are being leased faster than we have seen in a while, which translates to fewer vacant days and more consistent income.
A word of advice – Q3 is typically one of the best months for leasing in Indianapolis. We caution you if you are reading this and thinking “Oh great, I can charge way more when my unit becomes vacant next month,” to reconsider. Since we are a seasonal market, we have already experienced a MUCH slower rental market than we enjoyed in Q3.
Speaking of rent rates… rents rose $57 on average in Indianapolis to $1,550. This is the highest average rent we have ever seen. Again, good news.
And we aren’t done yet – In Q3, 2024, a total of 798 properties were leased in Indianapolis, marking the highest number of homes leased since 2015. This increase in leased homes means there’s plenty of competition in the market, even though rental properties, at least in Q3, were moving quickly.
T&H Realty Service's Perspective
Last quarter we said we were cautiously optimistic, and that optimism paid out. Quarter 3 was nothing less than spectacular.
However, as we noted above, activity, as expected, has slowed dramatically. If nothing else, this may be the sign we have been looking for that our market is returning to a normal cycle.
Our biggest piece of advice right now? Don’t hesitate to reduce your rent if your activity isn’t good and make sure your condition is top-notch to get those vacancies filled before winter hits.
