Lebanon, IN Rental and Sales Market Update – June 2025

While Lebanon remains a small market in terms of current inventory, the outlook for this community just northwest of Indianapolis is anything but small. With large-scale industrial projects in motion and a tight housing supply, Lebanon is poised for substantial growth. Investors should take note: June 2025 data offers a glimpse into a rapidly transitioning market.

Rental Market Trends – June 2025

• Average Rent: $1,700 (up 1% month-over-month, down 25% year-over-year due to prior anomalies)
• Vacancy Rate: Average days on market is just 20 days – the lowest across all markets reported
• Price per Square Foot (Homes): $1.18
• Apartment Inventory: 38 available units averaging $1,552 in rent
• Price per Square Foot (Apartments): $0.96

Despite only 10 single-family rental homes on the market, Lebanon’s rental sector is starting to heat up, especially on the apartment side. Workers connected to major industrial development projects are driving demand, helping elevate apartment rental prices above prior years. Homes are renting fast—averaging just 20 days on market—highlighting strong demand in a low-supply environment.

Sales Market Trends – June 2025

• Average Sales Price: $316,468 (up 6% month-over-month, up 13% year-over-year)
• Average Days on Market: 11 (down 67% month-over-month and 15% year-over-year)
• Price per Square Foot: $181 (up 3% year-over-year)
• Homes Sold: 29

Homes in Lebanon are selling faster than almost anywhere in the metro—with just 11 days on the market. Prices are steadily climbing, and the trend line is moving up and to the right. Even with strong appreciation, affordability still exists: over 100 homes sold under $250,000 in the past year, with 40 of those under $200,000. This blend of appreciating value and entry-level pricing makes Lebanon an attractive option for investors looking for long-term upside.

Market Insights & Investor Outlook

Lebanon’s current numbers require a disclaimer due to the small data pool, but the bigger picture tells a compelling story. As industrial developments continue to bring workers and businesses into the area, rental and sales activity will increase. We may be witnessing the start of Lebanon’s transformation into one of Indiana’s most promising emerging rental markets.

If you're looking to get in on the ground floor of a growth market, Lebanon property management through Red Door can help you position your investment for maximum return. With apartment rents rising and single-family home inventory tight, the demand is there—and it's only going to grow.

Related Links:

• Lebanon Property Management – Partner with experts to manage your investment in this emerging market
• Search Homes for Rent in Greater Indianapolis – Including Lebanon and surrounding suburbs
• Indianapolis Property Management Services – End-to-end support for residential rental investments

With so much capital flowing into the region, Lebanon deserves serious attention from real estate investors looking to capitalize on long-term market fundamentals. Watch this space—it's only the beginning.

• Transcript Here

  00:00 Lebanon Market Update – June 2025 - Rentals

  [Music]

  This one's yours. I'm going to let you have it.

  All right, I'll take it. So, Lebanon is weird in the sense that there's only 10 homes on the market. That doesn't even compute to me. Uh, as much as we talk about it, as much economic activity as there is and is going to be, um, it almost feels silly to talk about a market that there's only 10 homes on the market, but we know, right? We know that Lebanon is going to boom over the next one, three, five, 10 years. It It's on the upswing for sure. There's just so much money getting poured into that area. So, that's why we're talking about this.

  Um, so everything, all these numbers probably need to have a little star next to them with a grain of salt that we're only talking about uh 10 homes. Uh, but is what it is. So, we want to talk about it. Want to bring your attention to it as an investor because we think there's a lot of potential here. So, 10 homes on the market, it is what it is. Average rental price $1,700 uh dollars. That is up uh 1% month over month and then down 25%. I can't believe that year-over-year.

  I guess there was a weird blip uh last year at that if I look at that bottom left graph. Um yeah, some something strange happened, but again, we're talking very very limited numbers. So, one expensive home hit the market.

  That's exactly exactly exactly.

  Days on the market really respectable. I think the lowest that we've seen, 20 days on the market. Uh price per square foot 118. Uh and then interestingly, tons of not tons, but way more apartments on the home are on the market than homes on the market. 38 apartments on the on the on the market with an average rental rate actually really close to the rental price 1552 uh and an average price per square foot of 96 cents per square foot.

  Again, just take a look at the uh the three graphs down there, the two graphs down there for apartments and single family homes. apartments actually uh pretty consistently above uh above last year, but again, we only have such limited data on the uh on the homes. So, let's uh let's take a look at the sales data.

  Yeah, such limited data. I do want to say because I did see that apartments uh and condos and and I'm never typically drawn into these graphs there at the bottom for the apartments, condos, and and town homes because it's just uh you know, the market that we're in is primarily single family. So, uh but we we put that data there for people to consume.

  Uh in this area. So the with the prices ticking up there, I'm looking at the apartments and condos graph in the middle again uh there at the bottom. And I would say that is probably largely contributed to a lot of workers being moved into the area. Uh renting those apartments, driving the prices up, but uh the important thing there is those workers are undoubtedly working on the new industrial projects that are happening in the Lebanon area, which are going to bleed into a number of active homes. And that's why we're, man, talk about talking about this property on the ground floor. Uh, I think that's where we're going to start. The workers that are moving into the apartments and then uh evolving into um data for the homes.

  So, totally.
  
  

  03:02 Lebanon Market Update – June 2025 - Sales

  Okay, here we go. Sales data.

  All right. Sales data. Oh my gosh. Days on the market. 11 days on the market. Wow. Holy cow, man. It hits the market and it sold. Uh, look at that. Down 67% month over month, 15% year-over-year. So, wow. That is a an incredible number.

  The secret's out. But we're not the only ones that know that something's coming from Lebanon.

  Exactly. And you could see it. I mean, I'll just jump ahead here, but that average price over time is uh a little um Yeah, it's not what we've been seeing everyone ever almost everywhere else has been pretty much flat, if not down, and Lebanon is up. It makes sense. There's so much activity going on out there. Uh it makes sense.

  So, price per square foot 181. Um up slightly month over month, up 3% year-over-year. Average sales price is getting up there. Look at that. 316468. That is up uh 6% month over month, 13% year-over-year. My goodness, the secret is out.

  Uh 29 homes sold. And then we kind of already took a peek at that average sales price over time. I had a blip in February, but for the most part, it's up year-over-year. And it looks like the trend line is uh continuing to go up and I believe that we will just continue to see that.

  So, um, while the average sales price is 316, you can see here in the bottom right that there are some definitely affordable homes in, uh, in Lebanon. In fact, 40 under $200,000. That's pretty incredible. And, uh, another 60. So, you're at a 100 homes. This is over the past year, uh, that have closed under $250,000.

  So, uh, there's going to be some higher end homes coming in. There's also some existing uh affordable homes that probably are more uh uh more geared towards uh investors. So, they they are there. They are definitely there for uh for investors to pick up an investment home in Lebanon. And this is definitely an area that we're going to continue to watch.

  I think that we could literally be watching the the transition right in front of our eyes right here, right here in the data as we report it month over month. We could literally be watching the transition happen. because as these homes are sold that that we will inevitably see more uh data and information happen on the rental uh market reports as well. So, yep.

  [Music]