The housing market in 2022 certainly kept everyone on their toes. We experienced rises in both home prices and interest rates, before property numbers began to level out in quarter four.
Unlike the drastic changes in the real estate market, the rental market kept a more gradual growth until it entered the fourth quarter where we saw just a small drop in rental costs for most Central Indiana cities.
Rent prices for Indianapolis this year went up a small amount to $1,380, compared to the rent price of $1,358 in the last quarter of 2021. We saw a similar trend for other Central Indiana cities with rents increasing between $50-$200 from last year.
Indianapolis saw a significant increase in the number of homes leased in the last quarter with 389 in 2021 and 505 in 2022.
Days on market increased slightly from 31 in 2021 and 35 in 2022 for Indy.
Indianapolis’ rental market tends to stay fairly stable with rents rising steadily, the number of homes being leased either increasing or staying relatively constant, and days on market continuing to be in the 20-30 day range.
T&H Realty’s Perspective
As expected, rental activity slowed BIG-TIME during the fourth quarter. Showings and subsequent rental applicaitons were both way down for the quarter and days on market have continued to rise.
While some of the slow-down, perhaps most of it, can be attributed to seasonality, rising rents have appeared to keep people from moving and, therefore, reduced the number of people actively looking for a rental home.
A milder January, weather-wise, has provided a nice rebound in both showings and applications. We expect this trend to continue as we progress into the second quarter.