Indianapolis Rental Market Report – August 2025
This month’s Indianapolis metro update confirms what we’ve been signaling all summer: steady renter demand with slightly higher inventory as reluctant landlords add homes to the market. That mix means more competition on the supply side—but also more leverage for investors who price and position rentals correctly.
Rental Market Snapshot (Single-Family, Indianapolis)
- Active rentals: 1,329 (+4.5% MoM)
- Average rent: ~$1,700 (down MoM; roughly flat YoY)
- Average days on market (DOM): 48 (a bit elevated for late summer—pricing accuracy matters)
- Avg. price per sq. ft.: ~$1.18
Multifamily/Attached Detail
- Apartments/Condos: 971 active; avg rent ~$1,210; ~$1.49 psf
- Townhomes: 154 active; avg rent ~$1,700; DOM ~60; ~$1.19 psf
Read the market: Seasonality is starting to show, and added supply from owners who couldn’t sell is nudging rents sideways. The winners right now are the listings that are spotless, photo-ready, price-smart, and quick to respond on showings and maintenance.
Sales Market (Investor Lens: <$500k)
- Average DOM: 48 (up sharply YoY; homes aren’t flying off shelves like 2024)
- Avg. price per sq. ft.: ~$162 (~flat to slightly down YoY; last month’s MoM anomaly corrected)
- Average sales price: ~$247,109 (down MoM and ~3% YoY)
- Homes sold: 998 (+~3% MoM & YoY)
Investor read: This is a rare moment when affordability, selection, and negotiating power overlap. If rates ease later this fall, expect more buyers to re-enter and firm up prices. For buy-and-hold rentals, Indy remains compelling with significant sales volume under $250k and resilient renter demand.
How to Win August–Fall 2025
- Price to the current comp, not last year’s peak. Use today’s showing traffic and DOM, adjust early, and protect occupancy.
- Prioritize speed and presentation. Fresh paint, clean landscaping, and pro photos get you chosen in a crowded list set.
- Lean into renewals. Slightly more supply means renewals are gold. Engage residents 90–120 days before lease end.
- Shop acquisitions now. Inventory and DOM trends favor buyers; keep inspections tight and underwrite conservatively.
Need help reading the comps or timing a purchase? Our local team can model rent, vacancy, and turn costs street-by-street. Explore our Indianapolis property management, scan current Indianapolis rentals to benchmark pricing, or learn about our investor-first approach at Red Door Property Management.
Transcript Here
0:00 — Introduction
Let's get into our monthly market reports here finally. Now, in case you are just now joining or we've sliced this into a little bit of its own reel, which we'd love to do, be sure to check back to our earlier content here in this podcast where we covered some economic data that's happening here this month. We are continuing to mention the ordinances that are happening in Carmel and Fischers and also this month's question of the week which I get all the time which I know is going to interest many people that are looking at this market report right now, which is what areas you should be looking at to invest in potentially invested in this. We also went into short-term rental versus long-term rental areas that you might be interested in looking into. And I think some of the answers are going to surprise you. So be sure to check back to some of that information. Make sure you're fully informed. But without further ado, Mike and I are about to jump into this month's market report.
0:48 — Indianapolis Rental Market Update (August 2025)
Yeah, let's—well, let's just jump into it here for August 2025. So, the kind of the peak of the leasing season should be wrapping up, wrapped up. Usually July is kind of the peak of it and kind of tapers off from here to the end of the year. And so we start to typically see a little bit less demand and correspondingly a little bit of a price decrease from here to the end of the year. So let's take a look at the data.
Number of active homes 1,329. That is up 4 and a half percent month over month. So we'll keep an eye on that, on inventory levels. Average rental price, 1,700. That is actually down month over month and then up just ever so slightly—really unchanged—from last year. Days on the market is pretty reasonable, 48, a little bit higher than I'd like to see for this time of the year. Like to see that closer to 30, but it's not crazy like we see in Westfield and I think we'll see in Westfield. Anything's better than Westfield, right? So 48 days on the market, which is respectable, I would say. $1.18 as an average price per square foot.
This is all for single-family homes in Indy. I think it's worth mentioning the next two. The next one is apartments. So there's 971 apartments currently for rent in Indianapolis. Average rent on that is $1,210. And then average price per square foot, obviously a little bit more because they tend to be smaller, for $1.49 per square foot.
And townhomes, 154 townhomes. Average rent price exact same as single-family homes, 1,700. Average days on the market for townhomes is 60, a little bit more. And then price per square foot right in the middle of those two at $1.19.
Looking at the three price graphs there at the bottom, typically tend to focus on the bottom left one—single-family homes—that's what we represent mostly. It's what most of our investors are interested in. And overall it looks pretty good. I mean, it's just—I mean, August did have a little bit of a dip, but for the most part, 2025, which is the dark blue line, is just consistently over 2024. And I mean, it looks like it's just mirroring it. It's just above it every single month for the balance of the year. So really again it's kind of not a lot of news to report. It's a little bit boring but it's it's pretty much good news really.
Yeah. Yeah. So, and I'm going to back us up here just a little bit and then we can kind of discuss what's happening here. But I agree this is pretty stable information here. Days on market I'm not loving. But let's talk about market sentiment right now. What's your vibe on market sentiment?
And before I let you take over, I'm going to kind of tell you where I think we are. I do think saturation is becoming more of a thing in a lot of these markets. I feel like we are going to see that in a lot of the market reports that we're going to do here today. We'll see if we do. I have not reviewed any of these data reports. I want to digest these right along with our viewers. So, but I do feel like the vibe right now is a little bit of saturation that's contributing to a slight decrease in monthly rents right now.
We all know the importance of being with a trusted property management company who's going to keep you updated on market activity. I don't need to go into all that. We of course do all that so that we can make quick adjustments and place a tenant quicker than even these market reports would indicate is the average. But nonetheless, I do feel like that is—and maybe that's seasonality playing a factor. I don't know that seasonality should be playing a factor yet. What do you think? Should—is seasonality a factor already? I don't think so.
It definitely is in the sales market. Absolutely 100%. And in the rental market, yes, a little bit less so. Yes, absolutely, seasonality is a factor. So, I think we're kind of at an interesting time right now because people are having a harder time selling their home. And so, I think we're going to see an increase in supply from what we call reluctant landlords, people who can't sell their home or can't get the price they want. And so then they turn it into a rental.
We deal with those types of landlords all the time. And then I think you could probably attest to that, we're getting more and more of those calls on a daily basis. So I think you're going to see more supply from that. And in addition to that, we just went over in the economic updates is that we're seeing interest rates tick down. Real estate is always a desirable investment vehicle. And so that's going to maybe get some people off the sidelines who were on the sidelines, you know, was like, "Oh, I don't want to buy an investment at 7%, seven and a half percent, 8%." Well, now they're like sub six percent. And so I think we're gonna maybe see some more people getting off the sidelines and purchasing some local homes there.
Yeah. So, but the other end is that we just—every time I turn around I continue to read about how this generation is a generation of renters and average age of a purchasing home is now like 38 and even old people now are turning to rentals. So, it's an interesting time like is the supply and the demand going to meet out? Right now I think it's currently relatively stable. The supply and the demand are relatively—relatively stable here in Indy anyway.
Yeah. I think mostly nationwide. So, but it's just kind of an interesting, interesting time really.
6:52 — Indianapolis Sales Market Update (August 2025)
Yeah, it is. That's the thing about real estate is it always seems to be an interesting time, right? Because so many things are impacting it. So yeah, it's an ever evolving market in order to stay informed and ahead of the game. And that's exactly what we're trying to do for our viewers.
Okay. All right. So, I know I backtracked there a little bit. That's kind of more of an opener before you went into the numbers here, but I wanted to get a vibe here on market sentiment, and I want to see if these rental market updates are going to speak to that vibe. So, okay. Yeah, I think this Indianapolis market—this is pretty, pretty stable. Your days on market’s at 48. Anywhere in the 40s isn't scaring me. Again, if you're with a reliable property management company, you're smashing that anyway—that average anyway. So, but it is—I mean it's ticking up. It's still something you need to be aware of for sure.
All right, here we go. Let's get into sales data.
All right, sales data. So, you know, we keep hearing about weakness in the market. Are we going to see it here across the sales data? Average days on the market. What? Look at that—days on the market 48, which actually isn't that bad, but it's 45%—it's up 100% year-over-year. So, I mean, it's been on fire, and it looks like it's slowing down for sure. So, 48 days on the market, again, not bad. Not terrible by any stretch of imagination, but way, way more than last year and last month.
Price per square foot 162, down month over month—oh, we had a weird stat last month, remember? It was wrong. So, that's not down 50% month over month. It is probably more accurately down 1% year-over-year. So, ignore that number. There was a weird number coming out of my board for that.
Average sales price 247,109. Unbelievably cheap. And that's actually down—look at this. This is down month over month and year over year—it's been—the market's tanking. Look out. I don't know about that. But I mean, you could see it was relatively flat, creeping up just ever so slowly, plugging along, and then boom, August hits and we have a 3% decrease here. So, definitely something to keep an eye on. It looks like a trend that’s—you know, we're really going to start to see here.
Number of homes sold, 998. That is up 3% both month over month and year-over-year. And just as a reminder, guys, this is all for homes under $500,000. We have that in the very top left up there. But we look at this from an investor point of view. So we put the cap at $500,000 because most investors aren't looking over $500,000, right? And then that graph at the bottom right there just highlights how affordable or unaffordable an area is to kind of let you guys get a real quick comparison. You can see that Indy is one of our more affordable areas in the sense that there's—in the past year there's been—that's pretty small—but 3,600 homes that have sold under 200 and another 2,500 under 250. So gosh, under 250 there's five—almost six—more than 6,000 homes that have sold over this year. So, it's a very, very affordable market. I think it's why we continue to get writeups in Zillow and all of these places why Indy is such a hot investor market and undoubtedly this affordability makes a huge factor in that.
Yeah. Yeah. Exactly. So, look, if anyone's been viewing our podcast for any length of time, you will know that I am never too good to pat myself on the back. True. Very true. So, if you were listening to us over the last few months, you are literally queued up to enter the market at what I would say is arguably the best time to enter the Indianapolis market. You have no more bargaining power this year than you do right now. I've been touting it for the last several months that there's going to be—for lack of my understanding of a better term at least, and I'm sure there's a better term—but there's a slight correction happening. So market prices are starting to come down but you still have buyers who are trying to achieve top of the market—and there are—sorry, sellers trying to achieve top of the market. And these sellers—a lot of these sellers—need out of their property for one reason or another. So your bargaining power right now I think has never been better and I think that that has a potential to change once they start reducing interest rates, which we do expect probably a quarter of a percent here in September as certainly the high potential, but definitely in October I see that being a real thing.
So, when that happens, I think that it's going to shift a little bit more. A lot of people that are sitting on the sidelines, hoping for interest rates to go down, are going to start entering the market again, which is going to stabilize home prices. So, no better time to be an investor and start getting into the market. And if you've been watching our podcast for at least the last few months, you've been aware of this and you're ready to jump.
Yeah. The other thing too is that—and we mentioned this in the economic update—but this is resale. Actually, I guess this is a little bit of a mix. It's whatever—we pull this out of the local BLC. So this is mostly resale homes, but also now is a great time to be looking at new homes as well because, as we mentioned, it's actually for the first time in I think 25 years, there's a delta between new homes being actually cheaper than resale homes. So, go check that out. But it's also time to consider new homes as well as existing homes. Ton of helpful information in all of these segments. So, check them out and—okay, pat on the back is now over. Let's jump into the next market report. Here we go.
