Scroll through any headline about the housing market right now and you'll see the same word over and over: inventory. It's up nationally, it's up in Indiana, and in Central Indiana it's especially visible in the number of new apartment communities and condo buildings going up around Indianapolis. But more housing isn't the same as more of the right kind of housing — and for renters chasing a single-family home, the market still feels every bit as tight as it did two years ago.
- Is housing inventory actually up?
- Yes. Nationally, unsold housing inventory has climbed double digits year-over-year, and Central Indiana has seen a wave of new apartment and condo construction over the past two years.
- Does that mean single-family homes are easier to find?
- No. Most of the new supply is multifamily. Entry-level and mid-priced single-family inventory in Central Indiana remains historically tight, with under-$300K homes selling in under a month.
- Why does this matter for investors?
- Renters who want a house, a yard, and a garage still can't find enough single-family inventory to buy — which is exactly the demand pool that fuels sustained rental interest in single-family rental (SFR) properties.
The Apartment and Condo Boom Central Indiana Just Lived Through
Drive through Carmel, Fishers, Westfield, or Downtown Indianapolis and it's obvious: multifamily construction has reshaped the skyline over the past two years. Indianapolis delivered roughly 6,400 new apartment units in 2024 alone, with the Carmel/Zionsville/Westfield and Fishers/Noblesville submarkets absorbing about half of that new supply. Condo and mixed-use development followed a similar pattern, especially in walkable, live-work-play corridors near the urban core.
That construction wave is exactly why so many people assume "housing inventory" is loosening up across the board. In one sense, it is — renters have more apartment and condo options today than they did two years ago, and rent growth on multifamily has moderated as a result.
But that boom has already crested. Multifamily starts in the Indianapolis metro fell roughly 60-70% between 2023 and 2025, and deliveries are projected to keep shrinking through 2026. The supply story renters have been reading about is largely a multifamily story — and it's already slowing down.
Single-Family Inventory Tells a Very Different Story
While apartment towers and condo buildings were going up, the single-family side of the market barely loosened. Central Indiana's overall resale inventory sits at roughly 1.8 months of supply — about half the national average — and that number gets tighter the more affordable the home.
In other words: the homes most renters can actually afford to buy are the same homes that have stayed the scarcest, even as headlines tout rising inventory. New single-family construction has ticked up nationally, but a large share of it — particularly in Central Indiana's fastest-growing suburbs — is priced well above what a first-time or move-up buyer coming out of an apartment lease can typically qualify for.
Why Renters Keep Choosing a House Over an Apartment
None of this is really about supply alone — it's about what renters are asking for. Even with more apartments and condos on the market, demand keeps concentrating on single-family homes for reasons that haven't changed in years:
- Space and privacy. A private yard, a garage, and separation from shared walls remain the top reasons renters cite for wanting a house over a unit.
- School districts. Families relocating to Central Indiana for job growth in Fishers, Carmel, and Westfield are choosing single-family rentals specifically to access those school systems.
- Pets. Fenced yards and fewer breed or weight restrictions make single-family rentals dramatically more attractive to pet owners than most apartment communities.
- A "trial run" before buying. With mortgage rates still elevated and entry-level inventory scarce, many renters are treating a single-family rental as a holding pattern while they save for a down payment — not a long-term alternative to homeownership.
When Your Rental Is Competing With a Resort-Style Community
Here's the part of the amenity wave that owners of a single condo, townhome, or duplex unit need to pay attention to: a lot of the new multifamily supply built over the past two years isn't just more units — it's nicer units. Newer apartment, condo, and townhome communities in Carmel, Fishers, Westfield, and Downtown Indianapolis are leasing hard on amenities:
- Resort-style pools and clubhouses
- On-site fitness centers and yoga studios
- Dog parks and pet spas
- Covered or garage parking
- Package concierge and secure entry
- Co-working lounges and community events
If you own one condo or townhome in an older building or a small association without any of that, you're not really competing against another individual landlord anymore — you're competing against a leasing office with a marketing budget and a resort-style pool photo on the listing. That's a fight a single unit usually can't win on amenities alone, so it has to be won on the two things you actually control: condition and price.
Get the Condition Right
- Fresh paint, updated fixtures, and modern finishes — renters comparing you to a brand-new building will notice dated carpet or an old kitchen immediately
- In-unit laundry if the building allows it; it's one of the few in-unit amenities that can offset the lack of community amenities
- Address deferred maintenance before listing, not after a renter flags it
- Professional photos that show the unit at its best — this is competing directly against a leasing office's marketing
Get the Price Right
- Don't anchor your asking rent to a nearby amenity-rich community's rate — renters are paying part of that rent for the pool and gym, not just the square footage
- Benchmark against other individually-owned units and older buildings, not the newest community in the submarket
- A unit priced right rents fast and keeps vacancy low; a unit reaching for community-level rent sits and costs you more in the long run
- Revisit pricing each lease turn — amenity-community rents shift with occupancy, and your comp set should move with them
A one-off condo or townhome asking the same rent as a new amenity-rich community will almost always lose that renter. Price to your actual comp set — other individually-owned units — and let the property's condition, not its amenities, be the reason someone chooses it.
What This Means for Investors
For property owners weighing where to put capital, the inventory data actually sharpens the case for single-family rentals rather than muddying it.
Multifamily / Condo Supply
- Large wave of new units delivered 2024-2025
- New construction pipeline is already shrinking for 2026
- More competition among landlords for renters in the same buildings
- Renter demand skews toward downtown-adjacent, career-stage households
Single-Family Rental Demand
- For-sale inventory stayed tight, especially under $500K
- Renter pool includes families, pet owners, and buyers priced out of ownership
- Less new supply competing directly with existing rental homes
- Historically longer average tenancies than multifamily
"Housing inventory is up" is true — but it's an average of two very different markets. Multifamily supply has surged and is now cooling off, while entry-level single-family inventory has stayed structurally short. Investors reading only the topline number risk missing where the real, durable renter demand actually sits.
The takeaway for Central Indiana investors is straightforward: the apartment and condo boom of the past two years didn't relieve pressure on the single-family market, and it isn't likely to. Renters who want a house are still competing for a shrinking pool of them — which keeps well-located single-family rentals in high demand, with strong occupancy and pricing power for the owners who hold them.
