MARKET SNAPSHOT

Indianapolis q2 2025

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AVERAGE RENT

$1,325 Q2 2025

OCCUPANCY RATE

92.8% Q2 2025

NET ABSORPTION

2,814 H1 2025

ANNUAL RENT CHANGE

2.1% Q2 2025

ANNUAL OCCUPANCY CHANGE

0 BPS Q2 2025

COMPLETIONS

2,324 H1 2025

KEY TAKEAWAYS

Indianapolis saw a seasonal boost in leasing activity in Q2 2025, with over 1,800 units absorbed—pushing 12-month net absorption to 5,045 units and slightly outpacing the 4,769 units delivered during the same period.

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Class B properties posted softer rent growth at 1.9% in Q2 2025, as a narrow pricing gap with Class A units and aggressive concessions in new luxury developments likely, prompting operators to focus on maintaining occupancy over raising rents.

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As of mid-2025, only 3,775 units are under construction, representing 2.1% of existing inventory and the lowest pipeline total since early 2020, while just 275 units broke ground in the first half of the year.

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MARKET OUTLOOK

Indianapolis enters the second half of 2025 with solid multifamily fundamentals, characterized by stable occupancy, resilient demand, and a manageable development pipeline...

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