Why Indianapolis Is the Best Market For Multifamily in 2022

Choosing your market as an investor isn't always easy. There are things we should all consider - from rent growth to property taxes to landlord-friendly legislation.

When Stellar Investment Group entered the Indy market in 2020, we were more than excited. Not only have we seen rapid growth in Indy - I had witnessed the change first hand (I spent 10 years living outside Indy).

We looked at major MSA's nationwide and here is why we love Indianapolis...

For one, it is becoming one of the coolest places to live in the midwest. The Manual reports, "If you haven't visited the city in the last decade, you'd be shocked at how much it's changed. Craft beer bars, artisan shops, and fantastic restaurants are sprouting from the one-time sleepy concrete jungle."

Indianapolis has a booming rental market in a rapidly growing MSA. Forbes called Indianapolis the #1 place for renters in 2017 and that is still true today.

From its high-end tourist destinations to its ever-growing shopping and entertainment options, Indianapolis is a wonderful place to live.

It's no wonder why the city has seen a 5.4% population growth in the past 10-years. There's a reason why working professionals and families are packing up a one-way U-Haul and heading for Indy...

“#1 Place For Renters” - Forbes

There's been enormous job growth in Indianapolis. Employment has grown by 18.7% from 2010 to 2019. From healthcare to finance to tech, there is a diverse range of industries and employers. Money magazine called Indianapolis the #2 Best City For Jobs in 2017.

At Stellar Investment Group, the data suggests that job growth in Indianapolis will continue. Even as COVID-19 has changed the landscape in more densely populated cities like New York and Chicago, drivable cities like Indianapolis have held strong and have even grown during the pandemic.

“#2 Best City For Jobs” -Money

In Oct 2020, Yardi Matrix's National Multifamily Report shows that lower-cost metros continue to outperform. According to Yardi Matrix, Indianapolis is the 6th best market in the nation for year-over-year rent growth. That's a 3.4% rent growth through the COVID-19 pandemic.

Will that growth continue? The experts are forecasting that it will.

CoStar forecasts that rents in Indianapolis will continue to grow at an accelerating rate (see graph below). Cap rates are also projected to compress over the next 3 years.

(C) 2020 CoStar Realty Information Inc.

As investors, we need to challenge ourselves and our ideas. Especially when we choose where to invest. In addition to low property taxes, landlord-friendly legislation, strong population and job growth...Indianapolis is a very desirable place to live.

That desirability can’t be explained by charts or graphs. You have to visit the neighborhoods in Indy to understand why so many people are moving here.

From its Michelin Star restaurants to its revitalized downtown, Indianapolis is not only a great place to raise a family - it’s a great place to build wealth.

Click here to learn more about Stellar Investment Group and gain access to Stellar Multifamily Investments.

MORE AWARDS FOR INDIANAPOLIS:

#1 City for Renters (Forbes, 2017)

#2 Best Cities for Jobs (Money, 2017)

#2 State for Software Job Growth (software.org, 2017)

#5 City for Creating the Most Tech Jobs (Forbes, 2017)

#5 Best Place to do Business (Chief Executive, 2018)

#6 State for Overall Cost of Doing Business (Area Development, 2017)

Top 10 States for Millennials (Money, 2017)

America's Favorite Places (Travel + Leisure, 2017)

#1 Business Tax Climate in the Midwest (Tax Foundation)

32 Places To Go and Eat in 2019 (Food And Wine)

AirBnb's Hottest Cities (Curbed)

Best Places To Go in 2020 (Frommer's)

Top 100 Places To Live (Livability)

America's 20 Favorite Food Cities (Food And Wine)