The volatility of the real estate market in recent years has had a lingering effect on housing prices, available inventory, and the ratio of home buyers to renters. Nationally, housing prices are starting to rise, particularly in large metropolitan areas. A contributing factor is job growth, which has resulted in an increase in demand for housing.
Area rents are on an upward trend as well. In a recent study from Trulia, Indianapolis was listed as the 5th highest gainer for annual rent change across the country’s metro areas. In addition to job growth, the large number of home foreclosures has led to increasing rents in cities across the country. Those who have lost their home in the last few years are often unable to buy another house. This has created rising demand for a limited supply of rental houses and condos. As a result, rents have risen up to 5.6% nationally and 11% in Indianapolis. Close to 30% of American adults are living together with friends and family in order to make their rent more affordable.
Indianapolis is among the few cities that have experienced growth in the industrial sector, and along with it, the creation of jobs. Rental vacancy rates are the lowest they’ve been since the 1980’s. The demand for rental housing has led to the construction of new apartment complexes, even though other types of commercial development, such as office and retail, have stopped. However, building large complexes takes time. Meanwhile, the high demand for housing has led to higher rents across the city and central Indiana.
If you’re considering a move this summer, contact us to discuss options and see if keeping your current home as a rental is a viable option. Don’t want to be a landlord? No problem! We offer complete property management services; from advertising and tenant screening, to collecting rents and making repairs. We’ve got you covered! Give us a call at 317.578.1141 or use the form below for more info.
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