Should You Invest In Indianapolis?
When it comes down to investing in Indianapolis, it is considered to be a cash flow market with a rise in investment properties expected in the coming years. Other real estate markets in other cities declined up to 50% while the Indianapolis real estate market staggered at around 7%. Construction in Indianapolis seems to be a trend ever since 1849 with America’s first Union Station. Indianapolis is also known as the crossroads of America with six interstate highways crossing through the town. However, the transport sector isn’t the only thing the city is good for. Construction companies have been stretching their profit margins from the ever growing Indianapolis housing market.
Indianapolis Real Estate Market Forecast & Trend 2018
According Zillow.com, the median home value in Indianapolis is $125,736. Indianapolis home values have gone up 7.2% over the past year and Zillow predicts they will rise 4.0% within the next year. The median list price per square foot in Indianapolis is $93, which is lower than the Indianapolis Metro average of $104. The median price of homes currently listed in Indianapolis is $149,900. The median rent price in Indianapolis is $1,000, which is lower than the Indianapolis Metromedian of $1,175.
Chart Courtesy – Zillow.com
Top Neighborhoods In Indianapolis Real Estate Market
There are some great neighborhoods in Indianapolis where you can consider to invest in real estate. We are mentioning the top 6 neighborhoods in Indianapolis from Niche.com.
According to Niche.com, Glendale is #1 in best neighborhoods to live in Indianapolis area. The area is suburban with a total population of 4,864. Glendale is a neighborhood located on the north side of Indianapolis, located immediately east of Broad Ripple. Glendale is one of the oldest suburban neighborhoods in Indianapolis and is fairly residential in nature, despite being a heavy commercial district. It is best known as the home of Glendale Town Center. Currently Zillow has 8 homes for sale and 54 homes for rent in Glendale, Indianapolis.
Median Home Value – $208,429
(National – $184,700)
Median Rent – $682 (National – $949)
North Central, Indianapolis
North Central is #2 in best neighborhoods to live in Indianapolis area. It is a suburban area with a population of 8,012. Currently Zillow has 16 homes for sale and 7 homes for rent in North Central Indianapolis.
Median Home Value – $208,284 (National – $184,700)
Median Rent – $1475 (National – $949)
Broad Ripple Village, Indianapolis
Broad Ripple Village is #3 in best neighborhoods to live in Indianapolis area. It is one of seven areas designated as cultural districts in Indianapolis, Indiana. Located about six miles (11 km) north of Downtown Indianapolis, Broad Ripple was established in 1837 as an independent municipality and annexed by the city of Indianapolis in 1922. Broad Ripple High School, one of the earliest Indianapolis Public Schools, is located within the Village. The area is suburban with a population of 7,949. Currently Zillow has 31 homes for sale and 34 homes for rent in Broad Ripple Indianapolis.
Median Home Value – $204,941 (National – $184,700)
Median Rent – $1000 (National – $949)
Delware Trails, Indianapolis
Delware Trails is #4 in best neighborhoods to live in Indianapolis area. It is a suburban area with a population of 8,372. Zillow has 15 homes for sale and 9 homes for rent in Delaware Trail Indianapolis.
Median Home Value – $197,074
(National – $184,700)
Median Rent – $876 (National – $949)
Allisonville is #5 in best neighborhoods to live in Indianapolis area. The area is suburban with a population of 14,185. Currently Zillow has 27 homes for sale and 11 homes for rent in Allisonville Indianapolis.
Median Home Value – $199,287 (National – $184,700)
Median Rent – $864 (National – $949)
Butler Tarkington is #6 in best neighborhoods to live in Indianapolis area. Butler Tarkington is a neighborhood on the north side of Indianapolis with the following borders: 38th Street and Crown Hill Cemetery to the south, the Central Canal and Westfield Boulevard to the north, Michigan Road to the west, and Meridian Street to the east. It is an urban area with a population of 15,164. The neighborhood’s name comes from Butler University and the famous writer Booth Tarkington. Currently Zillow has 32 homes for sale and 29 homes for rent in Butler–Tarkington Indianapolis.
Median Home Value – $237,756
(National – $184,700)
Median Rent – $974
(National – $949)
Top 10 Reasons To Invest In Indianapolis Real Estate Market
Here are the top 10 reasons to invest in Indianapolis real estate market in 2018:
Business Friendly Economy
The circle city may be the 13th largest city in the nation but that doesn’t stop it from carefully drawing out its budget to accommodate its locals. In fact, it’s one of the few cities running on a surplus balanced budget making it favorable for most business investments. This is due to the low tax levied on business premises making it a viable option for the rental real estate business. 2. Steady Market The Indianapolis real estate market has been considered to be among the most stable markets out there. This is due to the city’s location. The mid-western city’s distance from the coast makes its market much reliable unlike cities like other cities based off the coast. Their markets change just as the seasons come and go.
Affordable Living Costs
Due to the nature of commerce heavily practiced in the area, it’s the most affordable place to be. According to CNN Money, it boasts of an affordability score of approximately 96% with low mortgage rates surpassing Dayton Ohio following it closely.
Diversification of State Capital and its Effects
The state capital has been directed towards funding a number of diversified sectors including tourism. The city hosts major sporting events like the NCAA basketball-championships, the famous Indy Car Race which attracts huge crowds each year. The Indianapolis real estate market can thrive from this especially in the home rental business during such occasions. Other areas of diversification include pharmaceutical as well as retail and healthcare investments. 5. Increasing Home Prices Probably one of the best news to an Indianapolis real estate market investor is to learn of the rise in home prices. Over the recent past, home values have shot up with over 7% percent with the median home value averaged at about $125,736 according to real estate agents. Not only will an investor get his money’s worth but also stretch out profit margins as time goes by.
Rise in Population
The population density in Indianapolis is on the rise with a growth rate of 0.33% according to the latest census conducted. Demographics show that the rise saw up to 3.9% growth rate of African Americans, replacing the non-Hispanic which accounted for a greater percentage of the population. This diversification is a culmination of the accepting nature of the locals towards people of all backgrounds living side by side and in need of new homes.
Indianapolis Has Highest Job Growth in The Midwest
Indianapolis has seen a surge in the technology sector ushering in a new business climate for the city. In 2016, over 49 companies chose to expand their firms and relocate opening up branches in the area. This led to over 4,500 unemployment cases eradicated contributing to the overall growth in the local economy. Low cases of unemployment are a great way of attracting new families moving into the area and another reason for real estate investment.
Indianapolis is One of The Best Downtowns
According to Forbes, Indianapolis is one of USA’s best downtowns. The Circle city is known for its urban design with several construction projects underway with more contracts generated than they are completed. Improved public spaces and conservation minded avenues are the in thing for most parts of the town. For those with a keen eye in real estate investment, this could be a major influence over the Indianapolis real estate market.
Properties Sell Fast on Market
A wise investment is usually that quickly returns the capital pumped into it. Indianapolis realtors have confessed to closing the fastest deals of their lifetime. Properties sell quite fast as they are listed on the Indianapolis real estate market. This is advantageous to an investor as worrying of marketing and advertising is completely done away with.
High Rental Demand in Indianapolis
Indianapolis is a college Town with university students choosing to reside off campus. Moreover, graduates tend to move in the immediate area while starting out creating a huge rental market. For the Entrepreneurs, opening up shop also adds to the demand.
Investing In Indianapolis Real Estate Market: The Conclusion
Indianapolis offers great opportunities for turnkey real estate investments. This is especially true for investors who want to invest in the market which is ranked the #1 most affordable place to own real estate (Forbes Magazine). In Indianapolis real estate market, it is still possible to purchase cash flow turnkey properties which are up to 10% below market value – which means you get the best returns on your investment. The Indianapolis investment properties come with a 3-year appreciation forecast of 10.3%.
We also recommend 4 other real estate markets for turnkey rental property investing:
https://www.threaltyinc.com/blog/2017/01 /04/why-invest-in-rental-properties-in-indianapolis-in/ https://www.niche.com/places-to-live/n/allisonville-indianapolis-in/ http://www.cashflowdiaries.com/why-is-indianapolis-such-a-great-city-to-invest-in/