Everyone is familiar with the world-famous real estate markets of Manhattan and Los Angeles; however, there are lots of “diamonds in the rough” out there if you know where to look. Today, we’d like to present an investment zone you may not have considered- Indianapolis. HomeUnion’s unique due diligence process has identified this Midwest region as a potential hub of cash flow investment activity.
Invest in Indianapolis Real Estate
Indianapolis fundamentals cater to both cash flow and long-term growth. While many markets saw dramatic increases and decreases, property values in Indianapolis have remained relatively stable over the last few years. The city has increased by 15.2% over the last decade (above the National average of 9.7%) and continues to put upward pressure on home prices and rental rates. The state of Indiana is currently running a budget surplus making it a very business friendly economy. The average home ownership in Indianapolis is 75% (while the national average is below 67%) – the shortage of rental properties leads to a stable rental market demand.
Indianapolis has been ranked the #1 affordable city by CNN, and is also one of the safest and cleanest cities in the US, ensuring it will remain a desirable destination for businesses and families alike- this translates to stable renters and dependable recurring cash flow.
Indianapolis has a superior transportation infrastructure with one of the best downtowns, and boasts a low cost of doing business, lots of local talent, and quality education, culture and lifestyle. The cost of living is 8.5% below the national average, and utility costs and state taxes alike are some of the lowest in the nation. All of this adds up to an attractive prospect for the young upwardly mobile professional.
Vacancy rates in Indianapolis are around 3.6%, and renters constitute 16.23% of all households. More than 98% of the city’s mixed workforce residents commute to work. Average household income is over 98k and the median rent is about $1,083.
Indianapolis’ economy is well diversified between manufacturing, IT, retail, healthcare, life sciences, service and tourism. Some of the region’s major employers include Rolls Royce, Toyota, Bayer, and Simon Property Group. The Chamber of Commerce reports that recently international companies have invested almost $8 billion in the state, leading to the creation of nearly 16 thousand new jobs. As we’ve seen before, where there’s employer diversity, there’s a healthy rental market.