June 2025 Indianapolis Rental Market & Sales Report
The Indianapolis rental market remained healthy and active in June 2025, aligned with the seasonal peak in leasing activity. According to Red Door Property Management, the number of active homes on the rental market increased slightly to 1,182, a trend attributed to summer seasonality. The average rent climbed to $1,770, reflecting a 4% year-over-year increase.
Days on market averaged 44 days, ticking downward month over month. However, Red Door observed that properties priced in alignment with market trends and guided by expert recommendations leased significantly faster—especially when owners were responsive to feedback.
Key Rental Market Metrics:
- Single-Family Homes: $1,770 average rent | $112 per sq ft
- Apartments: 859 units available | $1,299 avg rent | $1.52 per sq ft
- Townhomes: 132 units | $1,850 avg rent | $114 per sq ft
The market continues to show strength with year-over-year rental price increases across all housing types. Townhomes are commanding premium rents, indicating a growing appetite for mid-tier luxury rental offerings.
Owner Insight: Avoiding Vacancy Mistakes
Red Door shared behind-the-scenes lessons from working with owners unwilling to adjust pricing. New construction homes priced above market averages faced extended vacancy and, in some cases, were prematurely moved to the sales market—where profit margins are now limited. This underscores the importance of trusting your local property management experts to adapt pricing strategies to avoid unnecessary losses.
Indianapolis Sales Market Update – June 2025
Despite early signs of softening in other markets, Indianapolis home sales continue to offer investors strong value and opportunity. The average home sales price$254,215, with a 35-day average days on market—a 10% improvement month over month.
Key Sales Metrics:
- Price Per Sq Ft: $167 (stable)
- Homes Sold: 1,000 (down 9% MoM, up 6% YoY)
- Buyer's Market Potential: Increased ability to negotiate offers under asking price
The mid-year sales softening may provide a narrow window of opportunity for investors. Red Door encourages those looking to enter the market to consider acting soon, as future rate cuts could reverse current leverage. For homes under $250,000, Indianapolis still delivers some of the best affordability in the Midwest.
Investor Outlook
The combination of stable rents, investor-friendly home prices, and manageable vacancy rates continues to position Indianapolis as a top-tier rental market. Whether you're looking to grow your portfolio or optimize performance, staying responsive to market signals remains key. For real-time insights or a personalized rental analysis, reach out to our team at Red Door Property Management.
Transcript Here
Leasing Season Is Here—and the Market Reflects It
Welcome back to the Red Door Property Management podcast. We’re diving into June 2025’s rental and sales market data across the Indianapolis metro area. As we enter the heart of leasing season, we’re watching the rental market closely—and the numbers show a healthy, active environment for both current landlords and prospective investors.
Indianapolis Rental Market Overview: June 2025
- Active Listings: 1,182 homes (up slightly month over month due to seasonal factors)
- Average Rental Price: $1,770 (up slightly from May, and up 4% year-over-year)
- Average Days on Market: 44 (down from last month, but still a bit high for June)
- Average Price Per Sq Ft: $112
Rental Inventory Breakdown
- Apartments: 859 available, avg rent $1,299, $1.52/sq ft
- Townhomes: 132 available, avg rent $1,850, $114/sq ft, avg 41 days on market
Overall, Indianapolis continues to see stable rental trends. No major spikes or dips—just consistent, healthy growth. Single-family rental prices remain strong and have increased steadily month over month throughout 2025.
Behind the Numbers: What Investors Need to Know
While the average days on market sits at 44, our internal data tells a more nuanced story. Most Red Door-managed properties that follow market guidance are leasing far faster. The longer average is largely skewed by new investor properties priced too high relative to market trends.
If you're a new owner looking to cover costs on a higher interest rate mortgage, pricing too aggressively may result in longer vacancies. Listening to local experts who understand current conditions is key to reducing those days on market and maximizing returns long-term.
Real Investor Story: The Cost of Ignoring Market Advice
We recently worked with an owner in Greenwood who placed two new construction rentals on the market, refusing to adjust price despite multiple updates and market feedback. After a short, rigid listing period, the properties were pulled and listed for sale—where they now risk sitting for months. This could’ve been avoided with strategic pricing and collaboration. Always engage your property manager constructively, not combatively.
Sales Market Overview: Indianapolis June 2025
- Average Days on Market: 35 (down 10% from May, up 6% YOY)
- Price Per Sq Ft: $167 (unchanged MOM & YOY)
- Average Sales Price: $254,215—remarkably affordable
- Total Homes Sold: 1,000 (down 9% MOM, up 6% YOY)
Affordability continues to define the Indianapolis sales market. With thousands of homes selling under $250,000, investors have ample opportunity to find value—especially as softening appears to create more negotiation room for buyers.
Now Is the Time to Act—Especially for Buyers
We're seeing clear signs of softening. Inventory is up, days on market are ticking higher, and sellers are more open to offers below asking price. While it's not a crash, it’s definitely a shift toward a buyer-friendly environment. If you're thinking about entering the market, this may be your moment.
And remember—waiting for the “perfect” interest rate could keep you sidelined forever. Buy now, refinance later. Long-term ownership offers appreciation, depreciation, and tax benefits that far outweigh short-term cost fluctuations.
Final Thoughts: Partner with Your Property Manager
Whether you're buying, renting, or leasing, remember that property management is a long-term relationship. Like the saying goes: “You date your realtor, but you marry your property manager.” Partnering with a company like Red Door means strategic support, trusted advice, and consistent results—season after season.
Next up: Stay tuned for our individual city breakdowns as we dive into the suburbs across the Indianapolis metro. And if you missed it, catch the full economic update and this month’s investor-focused Question of the Week on our podcast or YouTube channel.
