Indianapolis October 2025 Market Report: Stable Rents, Longer DOM, and Investor-Friendly Pricing
October brought exactly what seasoned investors expect in Indianapolis: balanced, predictable movement with a touch of seasonality. Rents remain up year-over-year, inventory inched higher, and leasing timelines stretched a bit as we head into the colder months. Below, we break down the key rental and sales metrics for Indy from an investor lens (≤$500K).
Rental Market Snapshot — Indianapolis (October 2025)
- Active single-family rentals: 1,437 (+6.5% MoM)
- Average rent (SFH): $1,700 (+4.6% YoY, −1.5% MoM)
- Average Days on Market (SFH): 55 (≈+8% MoM)
- Avg. price per sq ft (SFH): $1.14
- Apartments: 993 listed, avg. rent $1,174
- Condos & Townhomes: 172 listed, avg. rent $1,650
What it means: Year-over-year rent growth remains positive while month-over-month softens—classic fall seasonality. The ~55 DOM is higher than ideal (we’d like 30–45), so pricing and speed-to-adjust matter if you want to avoid extended vacancy.
Seasonality Still Rules
Indy’s single-family rent curve typically peaks in late spring/early summer and tapers into Q4. The 2025 line continues to track above 2024 most months, but expect modest dips in the holiday window and leaner demand in December–January.
Sales Market Snapshot — Investor Lens (≤$500K)
- Average Days on Market: 43 (+5% MoM, +19% YoY)
- Avg. price per sq ft: $159
- Average sales price: $246,324 (+3% YoY, ~+0.25% MoM)
- Closed (last month): 996 under $500K (investor-relevant volume remains strong)
What it means: Indy’s sales market is “boring in a good way.” Prices are slightly higher year-over-year, DOM has lengthened from last year’s frenetic pace, and buyers get a bit more room to negotiate—especially as we approach year-end.
Affordability & Entry Points
In the past 12 months, Indy closed approximately:
- 3,622 homes under $200K
- ~6,000 homes under $250K
That depth under $250K is why Indianapolis stays on national “best markets for investors” lists: stable returns, ample inventory, and less whiplash than coastal metros.
Actionable Takeaways for Landlords & Investors
- Price with precision: With DOM rising into the mid-50s, align rent to the current comp set and be ready to adjust inside 7–10 days.
- Mind the calendar: Holiday weeks are slow. If you’re vacant, consider flexible initial terms (e.g., 8–9 months) to realign renewals to peak season.
- Negotiate on purchases: Slightly longer DOM on the sales side plus year-end timing can improve your leverage—particularly with motivated sellers/builders.
- Screen like a pro: Application fraud remains elevated nationwide. Use rigorous ID, income, and bank verification—credit alone is no longer enough.
From Red Door Property Management Indianapolis
Transcript Here
0:00 — Preview
is just good, valuable data.
It is. It's honestly boring in a good way. We’ve been saying that for the past couple of months, but it's expected seasonality. It's up year-over-year.
It's really balanced. It's boring, but good.
Exactly. Yeah, completely agree.
Okay. Here we go. We're getting into our market reports where we're going to go over rental data for the month of October and dive into some of the sales data that backs up the rental data.
Without further ado, I'm going to let Mike take over Indianapolis and then we'll go into the suburbs that surround Indianapolis.
All right, Mike.0:37 — Indianapolis Rental Market
Yep. So, first off, we start with the rental data. This is for October 2025. We're just past the peak of leasing season and beginning to cool off a little bit.
We have 1,437 homes on the market. Inventory is creeping up: six and a half percent increase month over month.
Average rental price for Indianapolis is exactly $1,700. That's almost a 5% increase year-over-year, which is great.
It's down one and a half percent month over month. Not surprising. That's tied to seasonality and very typical.
Average days on market is 55. That's up almost 8% month over month. A little higher than I’d like to see, even going into October, November, and December.
Usually around 30 to 45 is more desirable. But it is what it is. So as an investor, we are looking at a little bit higher days on market than normal.
Price per square foot is $1.14 for single-family homes.
We also track apartments and condos. There are 933 apartments available with an average rent of $1,174.
Condos and townhomes: 172 available with an average rent of $1,650. Very close to single-family rates.
The bottom graphs show average rent over time. The 2025 line trends above 2024, which is great news.
We see the typical seasonal trend: peaks in May, June, July, then tapering into October through December.
Nothing drastic, but something to be aware of as we go into the colder months and the holidays, where average rent dips slightly.3:14 — Reading the Dashboard
If you're just joining the podcast for the first time, here’s an overview of the snapshots.
Single-family data is shown at the top. Apartments and condos are in the middle. Townhomes at the bottom.
We track them all, but we only highlight apartments or condos if something abnormal is happening.
The light blue line on the graph is the previous year. These graphs are incredibly helpful because they let you track what's happening across the last 24 months and compare this year to last year.
Our 2025 trend line is really following last year, which makes it a very predictable market. Rents are a little higher, which we already know.
I'm not even seeing the dip I was expecting, because I think it's ahead of the consumer. I do think we'll see a dip in the average rental price over the next couple of months, but you won’t see that reflected in today's reported data.
Okay. That’s good enough for me. I don't see anything extremely noteworthy.
All right. Let's get into the sales data for Indianapolis.5:03 — Indianapolis Sales Market
Cool. So the sales data we pull is from an investor’s point of view. We cap the sales price at $500,000 because most investors aren’t buying above that.
Days on market is 43. That’s up 5% month over month and up 19% year-over-year. Last year was a wild market, so this reflects a return toward normal.
Average price per square foot is $159.
Average sales price is $246,324 — up 3% year-over-year and up slightly month over month.
There were 96 homes sold in that price point last month. Tons of inventory in Indianapolis.
The graphs show average sales price over time. Similar story: slowly creeping up year-over-year.
Normal and boring, but good. Very steady.
The affordability graph shows how many homes sold by price bracket.
Under $200K: 3,622 homes sold in the last 12 months.
Under $250K: almost 6,000 homes.
Indianapolis remains extremely affordable, especially compared to other parts of the country.
This is why Indy ranks so high nationally as an investor market: consistent returns, steady growth, stable pricing, and affordability.
That bottom-right box tells you what you should expect to spend when entering this market. It becomes even more valuable once we get into suburbs like Fishers and Noblesville.
Aside from that, this sales report is pretty uneventful.
Average sales price is finally trending in the direction I’ve been predicting — prices beginning to stabilize and potentially come down slightly.
Time will tell.
There’s not a ton of movement overall. 2025 has been relatively flat. A slight seasonal dip is expected, but nothing dramatic.
