April 2025 Indianapolis Rental & Sales Market Report

Welcome to the April 2025 edition of the Indianapolis Market Report from Red Door Property Management. This month’s data reveals a rental market that’s trending upward and a home sales market with signs of both resilience and softening. Whether you're an existing landlord or a new real estate investor, understanding the latest numbers will help you make informed decisions across the Indianapolis metro area.

📍 Indianapolis Market Summary

Rental Market Data

• Average Rent: $1,750 (↑ 3% MoM, ↑ 8% YoY)
• Days on Market: 45 (↓ from 49 last month)
• Price Per Sq Ft: $1.23

Additional Rental Insights: Indianapolis saw strong leasing activity in April. The consistent YoY rent growth and declining days on market reflect a seasonally strengthening rental market. Apartments averaged $1,189/month across 1,281 listings, while townhomes averaged $1,875/month with longer turnover times at 53 days on market.

Sales Market Data

• Average Sales Price: $255,209 (↑ 3.5% MoM, ↑ 4% YoY)
• Days on Market: 54 (↑ 42% YoY)
• Price Per Sq Ft: $166
• Total Homes Sold: 1,036 (↑ 15% MoM, ↓ 2% YoY)

Investor Insight: Inventory is building, days on market are climbing, and sellers are more frequently reducing prices. However, sales prices are still trending upward, particularly for homes under $500K. This suggests that while buyer demand has softened, well-priced, move-in ready homes in affordable segments continue to move quickly.

💡 Market Commentary & Investment Outlook

Indianapolis continues to prove its value as a “slow and steady wins the race” investment market. Rent growth is healthy, turnover is stabilizing, and the sales market is adjusting to higher interest rates without a price collapse.

One of the key takeaways this month is the importance of realistic expectations for rental leasing timelines. Many property owners still expect 1- to 2-week lease-ups, but even in a strong April market, the average days on market is 45. That’s normal — and with the right pricing strategy and property condition, investors are still landing great tenants.

On the sales side, while national headlines warn of cooling, Indianapolis continues to outperform due to affordability. With 3,600 homes sold under $200K and another 2,500 in the $200K–$250K range, Indy remains one of the most investor-accessible metros in the country.

⚠️ Caution for Budget Investors

Beware of “too good to be true” deals in the $100K–$150K price range. Yes, the numbers look great on paper — but many of these homes are in high-turnover zones with above-average vacancy, tenant risk, and maintenance costs. Our team regularly counsels investors to expect hidden costs in lower-tier neighborhoods that spreadsheets can’t predict.

🔗 Helpful Links for Indianapolis Real Estate Investors

• Indianapolis Property Management – Get expert guidance on leasing and maintaining profitable rentals.
• View Indianapolis Homes for Rent – See current listings and market activity.
• Greenwood Property Management – One of Indy's best value-play markets for long-term rentals.

Looking for hyper-local insights for areas like Fishers, Westfield, Brownsburg, and Lebanon? Be sure to check out the full April 2025 market series on our Red Door Property Management Podcast or follow us on social for all the latest rental trends and economic updates.

• Transcript Here

  
  
  
  
  Introduction and New Segments Overview
  
  Welcome back everybody. Thanks for joining us here at the Red Door Property Management Podcast, where we covered just about everything in regards to real estate investments when it comes to the Indianapolis Metro area. If you haven't already, be sure to check back into the new segments we've we've gotten into this month, which we'll include.
  
  Let me check here. We've got economic updates, which spoiler. It's, it gets pretty dicey over there. We talk about Westfield, we talk about what's going on in Fishers, which Mike is now trying to get into as quick as possible before that city ordinance comes into full effect. So check out what's going on economically.
  
  We get into, and this is, you've gotta check out the question of the week. So this month's question of the week gets into making sure you're asking probably the most popular question when it comes to investigating. A property management company. So dig into that. Let's see, what else do we add This month we got market reports, which we are about to dig into right now.
  
  We also have the one minute roundup that we're gonna, we're gonna get into this month. We realize that not everybody has an hour and a half, two hours to consume all of the delicious content that we're always creating here. For those of you that don't have that kind of time, we're gonna wrap up the market reports in literally a one minute recap, just.
  
  Spitting out the numbers for your consumption so that you can still consume those numbers and still get on with your day. So those are some of the new segments. We are gonna continue to add more and so that you can see even behind the scenes in what's going on here in the property management world when it comes to red door property management.
  
  We're gonna lift up the skirt, if you will, so that so that you know what's going on. All right. You ready to dive in?
  
  Diving into the Indianapolis Market Report
  
  Let's do this, let's talk about Indianapolis Market report here for April, 2025. Again, we're gonna talk about what's happening on the rental side, and then we go into sharing some details that are happening on the sales side.
  
  If you haven't already, you are for sure gonna wanna check out our socials. They're listed on the bottom of this beautiful graphic, and that's where you're gonna find all the content that we're putting together. Including all of those new segments that we're creating, which is a little behind the scenes peak of what goes on in not only property management, to make sure that you are inquiring properly when you are in search for your new property management company, whether that's red door or otherwise.
  
  So be sure to check those out. Check out our socials, and subscribe where needed. All right, Mike, I'm gonna let you take over, Indianapolis, April, 2025. Market report.
  
  Yeah. So again, this is April. We're recording this in May, of course, but we're looking at backwards. We're looking into April's numbers.
  
  So the, spring season is starting to heat up a little bit, not quite into the full swing of it. But we should see some seasonality taking effect and we are. So we'll take a look at the number of active homes is 1,105. That is up a little bit month over month, but that's to be expected With seasonality, we're gonna see more active homes, but we're also gonna see more.
  
  Activity. So the increase in active homes is not a concern, definitely just chalking that up to seasonality.
  
  Rental Market Insights
  
  Average rental price. Man, I'm loving what I'm seeing here. Plus two, let's call it 3% month over month plus almost 8% year over year. So just nothing but positive numbers to report here on the Indianapolis market.
  
  Love to see. And I can't believe even it is still as inexpensive as it is. 1750 is the average rental price in indie. I don't know why for some reason, you just have something in that just gets pegged in your brain. Like for me, like a car payment should always be like $250, and for me, oh my God, I know I'm showing
  
  that's not a thing. Have you seen what average car payments are these days? I think your average car payment is, it's eight. I think it's $800 or something like that. Fact check. It's insane.
  
  I know anyway, so for me, for some reason, I just always have indie pegged at 1300 to 1350.
  
  That's the it's that's in my brain. But yeah, here we are at 1750 here. So it's wild. Average days on the market is ticking down, which is great. So it's 45, which is a little bit high. But we are still only in April. We should see that hopefully go down. As we get into the, really the height of the leasing season, so to see that it's at 45, it's okay ish.
  
  And, but to see that it's trending down is really positive news. Average price per square foot. Again, this is a little bit more of a multifamily number that we look at, but a dollar 23 is your average price per square foot for rental homes in Indianapolis. Jumping through the two middle graphics there apartments, there's 1200.
  
  81 apartments on the market and the average rental price there is a little closer to what is in my brain. 1189 is the average rental price for apartments in Indianapolis with an average price per square foot of a dollar 49. Town homes, certainly a lot less inventory for there, just 106 town homes on the market in Indy.
  
  Interestingly, the average rental price is actually higher than single family homes, so people are paying a premium or trying to get a premium for the town homes. I. 53 days on the market for town homes and a dollar 25 per square foot for for the town homes. Looking at the bottom graphs I try, I tend to focus mostly on the single family 'cause that's primarily what we do.
  
  And that just looks great month over month, year over year. Even the little sneak peek into May. Everything is up until the right, it's up over last year. It's up over last month. So honestly, it's like nothing but. Good news here in Indy. It's not like shooting through the roof, but it's also in the positive direction.
  
  So it's like just chugging along, predictable. Certainly heading in the right direction. I love it. It's great news. I.
  
  Yeah, no, this market report is awesome. Which I mean ever since the COVID PR and following COVID years we've definitely entered much more of a stable market where it was rocky when we started doing these market reports, for sure.
  
  We were kinda all over the place. So yeah, this is super stable and pretty much what you're wanting to see or going to see with seasonality playing a factor, which you alluded to there. One thing I did wanna highlight on, which I always love to do, one of the. One of the biggest factors of a healthy market and probably one of the things that I'm paying closest attention to if I have a home here in the market, in the area, is gonna be your days on market.
  
  So we're at 45 average days on market, which is honestly every owner I talk to, of course, they are like, they're surprised if you can't tell 'em that their home is going to lease in a week or two weeks. That's not really the reality of it. It does happen and in fact, seasonality this time of year, it does happen a fair amount, but average, you're looking at 30 to 40 days on the market even if, even in a healthy market, even if your property is priced right and all the things are right.
  
  Yeah, 30 to 45, 40 days on the market is probably what you're gonna see. Now if you're with a good property management company, you're probably gonna see it a little bit lower. But where I'm going with this is do you think there's any value in you taking a minute and pulling up that that report, that funnel report in discussing days on market, maybe at the end of this?
  
  Yeah, we can definitely do that. I think there's a ton of value. We can do it now. We can do it. I was thinking actually, we just do a whole different video on that. Okay.
  
  Alright.
  
  Lets do video on.
  
  All right. Sounds good. Alright, we'll table that for a minute. So check back in for that. We're going, we're gonna do another video of this sweet little graphic that kind of goes into how much interest you should really expect on a property and how that converts into application.
  
  So stay tuned for that. All. I'll stop talking. Let's go into sales data.
  
  Sales Market Analysis
  
  Alright, sales data. So this is hotly contested between Chris and I as far as what is going on in the sales market. Chris is a little bit of a doomsday. I'm a little more optimistic. Ly optimistic, not
  
  so we'll see. We will see as we go through these slides where we are. But seriously though, nationally, I mean everything I am reading, I think everything you're reading is that there is a slow down, there's way more inventory this year than there was last year. We are seeing more price cuts than we're seeing last year and days in the market are ticking up.
  
  And so it's certainly nationally the trend is that, are we seeing that here locally maybe. And I was thinking about this today. I was thinking that if, if the overall market is seeing it, we may not see it in the numbers that we report, or I'm nu our numbers may be a little bit skewed because we focus on the lower end of the market, not the lower end.
  
  Sorry. Good point. Good point. The investor point of view. And so typically those I don't wanna say they're recession proof of course, if there's gonna be a re a recession resistant type home, it's gonna be in the affordable price range. I think I shared with you that I'm, I am currently looking in the fisher's market.
  
  I am looking in the affordable range in the lower. As we look at this graph in the bottom right as far as where the homes are available for the one in Fishers, we'll, we will jump to it when we get there, but there's not a lot of homes available under two 50, $300,000. That's the price point that I'm looking at, and I'm telling you that there was multiple offers going in on those properties, and they are there.
  
  Oh yeah. And they sell, most all of 'em have sold within. Within a week of us, of them going on the market. So anyway, I just wanted to throw that out there, that these numbers, again, please understand that they are from under the, under 500,000. We put a cap under of 500,000. We probably put a little note on there so people understand that on the graphic.
  
  But anyway, so the, these numbers may be not. Exact with the overall market, that might be just shifted a little bit because of the lens that we use of the investor point of view under 500,000. So anyway, all that, to get to the numbers of days on the market is 54 days on the market. Actually less month over month.
  
  But look at that year over year, it's up 42%. So that means last year we were probably. I don't know, 20 something, 30 something. So definitely more days on the market for sure. Price per square foot, actually up to 1 66 up month over month and year over year. Best about three and 4%. Average sales price though, continues to creep up.
  
  And this is my thesis, is that the, especially in our price point, it's gonna continue to creep up. It's not gonna go through the roof, I don't think. But it's just gonna continue to creep up. So we're at 2 55, 2 0.09, up 3.5%, up almost 4% year over year. And it's, again, I just I, it's just so affordable.
  
  If you're from California, Colorado, really almost anywhere. To know that the average sales price is two 50 is just unbelievable. It's crazy affordable. Number of homes sold 1036. Now that is up 15% from last month, but that could be chucked up to seasonality but down just slightly year over year.
  
  So that's interesting. We'll wanna keep an eye on that. If I remember last month, it was nothing but doom and gloom in terms of volume of, or number of homes sold almost through every single market that we had. So interesting to see that. Leveling out a little bit from from last month's numbers.
  
  Yeah, go ahead. Sorry. Yeah, let me I wanted you to get through this before I, I get stuck on a spiel like I often do sometimes, but I think last month I think everything was up right because we were like, oh Mike's prediction was super duper, right? It was like up 30 or something percent.
  
  And now. Now. So couple things. Number one, you're absolutely right on what you were saying.
  
  Investor Perspectives and Market Trends
  
  This investor point of view is going to absolutely be skewed, and I wanna dig into your personal experience when we get to the Fisher's market. Yeah. So if you're watching this and you're curious about Mike's actual personal experience, wait for the Fisher's market report, because I'm gonna force him to get into some of that.
  
  But. This, the home sold here year over year, down 2%. This is even in your investor point of view. Yeah, it's down 2%. Your days on market is up 42% year over year, up 42%. Your days on market, and this is your investor point of view. Now. Now listen, Mike was being funny here on the front end. I'm not predicting doom and gloom Mr.
  
  Mr. Doom and gloom. Here we go. I'm not saying doom and gloom, but if you can't, if you can't see that there are, there is, there are things changing and everything we're reading out there right now Yeah. Is that that everyone is having to reduce their prices in order to attract buyers now. Based on a previous discussion and another segment that we had I, I did get some, I did put some more thought into this, and I do think that there's an obvious bottleneck of buyers out there, and that bottleneck is only waiting that bottleneck is going to expand, allowing more of these buyers through as soon as there's a tick down in interest rates or if there's a small tick down in.
  
  Home prices. I there's for sure not gonna be a major correction in the housing market. I don't see that at all, but things are obviously going to cool down. And I don't know if that makes me no radames in predicting that or just that's the obvious. That's the obvious goal of the Fed anyway, is to get things to cool down. Okay. Alright. That's that. Anything else you wanna say about this?
  
  Yeah, let's just wrap up here. Just on the bottom two graphs, average price over time it's up year over year. It's up month over month. It's nothing huge and drastic and there's no major shifts, but it's just.
  
  Plotting along. It's what Indie does, right? It's just, it is yeah. I dunno if I'd say predictable, but it is tried and true. It's not up and down. It's slow and steady wins the race in Indie and that's that's been our market for years and years now.
  
  It got wild during COVID and all that. With everybody did, but it's returning back to normal where it is slow and steady wins the race in Indy in terms of sales price over time. And that's what we're looking like here. And then last one, bottom right number of homes sold. We just include this so you can see and compare the different markets as far as where and how many homes are available in each different price point.
  
  And, indie Tops, not tops, but it's probably the second most affordable market that we report on. And you can see, even now you've got 3,600 homes. That sold under $200,000. And that's unbelievable. If you go up to two 50, you got another 20, what? 500 basically. So Indy remains a very affordable market, is basically all that graph is trying to show you that there's a lot of homes available in that under two 50 category, which you can't find in a lot of places.
  
  Can't find that in Fishers. Can't find that in Westfield. You'll see it's gonna be exactly inverted in as we get to some of these other markets.
  
  I know. Yeah. Yeah.
  
  Concluding Thoughts and Advice for Investors
  
  It's definitely an affordable market. You know what's shocking though, is you still having new investors to the area that are trying to bottom fish, and they do pick up.
  
  They are looking for I guess looking for, they actually, they find. These properties that are like like a hundred thousand dollars, which so it's like bottom of the barrel. And then they're hoping that they can put a little bit of money into 'em and rent 'em for $1,700 a month or $1,800 a month.
  
  And that's not really realistic. I'm dealing with an investor right now. So I do think it's important to probably be looking somewhere around, at least in that $200,000 price point. I don't know what your feelings are on this. But for a good solid investment property you pro, that's probably the price range that I would suggest within the current market, maybe put a little bit into it, and that's probably going to develop into a property that's gonna be a solid investment property over the long term.
  
  Yeah, Indy maybe. Maybe you can get a house for one 50, maybe if you search really hard. Yeah, like one 50 to 200. Yes, you can find homes under that, but. In my experience, and I think probably yours too, I've been doing this for 20 years. Those houses look great on paper. Yes, and the returns look amazing on the spreadsheet.
  
  But when you actually live it for a year or two what's not on your spreadsheet is the increased vacancy. When you get into those price points and those areas, quite frankly, you're gonna have crime, you're gonna have squatters, you're gonna have theft you're gonna have evictions, and all of that doesn't factor in on those.
  
  Cute little spreadsheets where you're just looking at the ROI and cash on cash return and all that good stuff, which is important to look at. I'm not making fun of those spreadsheets, but yeah. What I am pointing out is that a lot of people don't consider that those factors when entering kind of those like B minus and C type homes.
  
  Yes, exactly. And that's I wanted to make that point. I know we're sticking here on the Indianapolis market a little bit, but I think this is super good knowledge for people to have. And one other thing that you didn't quite mention there are, you alluded to it, but is those turnover costs in those areas that's not factored into those sweet little spreadsheets like you mentioned in those areas.
  
  You're gonna have high vacancy and large turnover costs, which those turnover costs, they sneak up on you after that first tenancy, any. Any gain. Let's say you place the tenant pretty quickly, those turnover costs will sneak up and wipe away any profit margin you thought you had. So anyway that's food for thought.
  
  We're here to talk about the numbers. We'll get in, get into another segment if you want more of the gritty details. Here we go. Moving on.