Each year, thousands flock to Indianapolis to see the Indy 500, one of the country’s premier auto races. In the coming years, there will be a different race in Indianapolis: the race to invest. The central Indiana city has excellent market conditions and could become one of the top targets for single-family rental investors around the country. Here are a few reasons why we see Indianapolis becoming a prime spot for SFR investment:
A diversified economy powers growth
Indianapolis has a strong private sector, and the city’s unemployment numbers declined 0.4 percent between the months of January and February alone, according to the Bureau of Labor Statistics. While many metropolitan areas are heavily reliant on one industry, Indianapolis thrives thanks to economic variation.
Multiple industries contribute to the area’s economic performance, with education, finance and health care representing some of the most important sectors. The city’s population rose steadily between 2010 and 2013, according to the most recent information from the BLS, and continued economic performance should encourage further migration to the area.
A forecast released last year by The PNC Financial Services Group noted Indianapolis’ economic diversity as a particular strength. Unlike other Midwestern cities, which are extremely dependent on strong manufacturing, the Indianapolis economy is spread throughout a variety of manufacturing and service-based industries. The Indianapolis economy is untethered from any specific market or industry trends, which should provide steady and sustainable growth throughout the coming years.
A market primed for investors
The Indianapolis housing market is perfect for investors who want to maximize the return on their single-family rental investments. Prices are currently low, and the city has a sizable inventory of homes, but that is likely to change.
The Metropolitan Indiana Board of Realtors revealed increases in closed sales, home prices and inventory through the month of February, and it seems the first two metrics are poised to grow even further. Pending sales rose in February as well, and if these gains continue, the city’s inventory could come under pressure.
Indianapolis currently has 10 months of housing inventory available, but rising demand for homes could eat into that demand and drive up prices as competition for a limited number of homes increases. As prices rise, renting may become a more appealing option than owning for many Indianapolis residents. Investors who enter the market now can maximize the yield on their investment by purchasing a property while prices are low and reaping consistent returns from rental income.
HomeUnion® makes it possible
Investors who are located outside the Indianapolis area can still take advantage of the city’s SFR investing boom thanks to HomeUnion®. HomeUnion® offers investors immediate access to hundreds of prevetted rental properties located in the best markets across the nation. These homes are chosen through a combination of deep data analytics and boots-on-the-ground research that provides confidence for investors who may never visit their rental properties in person.
HomeUnion® helps investors finance their purchase through an in-house lender, and handles property and tenant management after the purchase is complete. Stress-free access to the benefits of SFR investing is possible thanks to HomeUnion®.