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
00:00 June 2025 Market Report – Indianapolis Rental Market
[Music]
Welcome back. This is Red Door Property Management podcast where we are about ready to dive into this month's market reports which we are going to cover June 2025. We are just in the early days of July right now. We are going to look back on June, see what's changed, see what adjustments we might need to make in order to rent our homes quickly or well, pick up a new investment property potentially here in the Indianapolis or surrounding suburbs. My name is Chris Knight. I'm the business development manager here with Red Door Property Management. And as you all know, I'm joined with Mike Taylor, broker owner. Mike, how you doing?Good, Chris. I can't believe this is like the third of July. We're getting this information so fast, getting out so fast to our audience. I love it. It is like leasing uh season. It is almost the peak. June and July are the peak of leasing season. So, this is exciting times.
Yeah, rental market's booming right now. That's that's for sure. Check back at our economic updates uh earlier segment where you can learn about what's going on here in the Indianapolis area compared to what's going on nationally as well as what the heck's going on in Lebanon, which uh we are continually talking about what's happening in these emerging markets. So, check back at that uh earlier segment uh that you'll find on our YouTube channel uh or any of any of our other social media platforms which are conveniently located here at the bottom of this nice graphic. So, uh whether you're an Instagram user or a Facebook user, you can find a lot of this information uh right there on those pages as well.
Um all right, I think we're ready to dive dive into the info. Are you ready?
Let's do it. I'll take uh Indianapolis. This is Indianapolis rental data uh for June again July 3rd. Yeah, let's let it rip. So number of active homes 1182 uh that is up slightly month over month, but that's uh you know very seasonal. Uh we can chalk that up to seasonality. So uh very very uh reasonable increase of active homes there. Average rental price 1770.
Uh up just ever so slightly uh from month overmonth, but uh up 4% year-over-year. That's pretty decent. I'll take that. Uh days on the market, uh 44, not not terrible. It is down from last month. I would say for June, I would like to see that closer to 30. Um but it's at 44. And so it's just a teeny bit high for kind of being where we are in the peak of the season. Um it is down. I'd like to see it go down even more for uh for July. So, um, but again, not terrible, not like Westfield's numbers.
Um, average price per square foot is $112 per square foot. That's just down ever so slightly month over month. We've got our middle two numbers there. So, those are single family homes. We break it down into apartments and um, town homes. So, apartments, there's 859 apartments for rent with an average rent of uh, $1,299. It's called 1,300 bucks. Average price per square foot on apartments in Indianapolis is a $1.52.
Uh now town homes is there's 132 of those available. Uh interestingly they're actually more expensive than the single family homes $18.50 ever so slightly. So a bit of a luxury play there I guess. And then days on the market slightly better at 41 with $114 uh per square foot uh for the town homes. We've got our um our three kind of price overtime graphs there. I typically tend to look at the the single family home one, single family homes one, and it's looking healthy. I mean, it's year-over-year uh consistently every single month this year has been an increase over last year. So, uh, really pretty I mean like kind of again for Indianapolis like not a ton of news, but just like positive just plugging along like looking good like thumbs up.
Yeah. There's no explosions. Uh, no no overwhelmingly exciting news unless well unless you're an active investor for many years, you understand the exciting news of a stable market.
Yeah.
And that's what you that's what you see here. Um, but no, there's no there's no fireworks going off. You see what I did there? Uhuh. It's July July. Yeah, there are no fireworks involved with this. Uh, this is this is good information. I mean, average days on markets ticking down month over month. I'm not sure why we don't have our year-over-year. Do you know why that's that's not there?
Uh, because we remember we changed the data where we pulled it from the beginning of the year. So, we don't we'll have it next year, but we won't have year-over-year until next year.
You're right. You're right. You're right. Okay. Okay. So, I mean, average days on markets ticking down. That's good. 44 average days on the market in the month of June is higher than what we are seeing. That's that's for sure. The only thing that Red Door is seeing and this is I mean we love I love personally I love to be uh very transparent in all my my conversations with owners whether you decide to work with us or not. One thing you can always rest assured on is I'll be completely transparent on on my thoughts and feelings.
And uh the only thing even close to seeing 44 days on the market I think on with anything under Red Door's roof is the uh new new properties, right? New properties might see something a little bit higher as your average day on day on market was somewhere around the 40 days. And that's typically because you're trying to cover those these are new investors that are acquiring properties at slightly higher interest rates and they're doing their best to cover those costs uh on the front end. And sometimes those sit on the market a little bit higher because well you're starting at a higher price point than your uh than the market average or market rate would would determine it to be.
So but aside from that uh and Mike tell me if your perception is wrong, but I mean when we're turning properties uh and we're suggesting a market rate to our new uh the our our continued uh portfolio owner group that we have um and we're just performing a turn, our average days on market is much much lower than that.
10:26 June 2025 Market Report – Indianapolis Sales Data
Yeah. It's been great. And yeah, 44 is not representative of what we're seeing. Uh, it's probably more in the low 20s I would say, for for our average turn time. Yeah, good. So, sales data for Indianapolis. Uh number of active homes, 4,360. Uh that's up 7% month over month, but it is down 12% year-over-year.So uh we actually kind of like this number here because it still shows that there's demand, um homes are still selling. There's not a massive flood of homes on the market. It's kind of that supply-demand balance which is actually really healthy. Um average sales price, $309,000. That's down just 1% month over month and down 4% year-over-year.
So, you know, if you're a buyer out there, um this is probably actually pretty good news, right? Sales prices are down a little bit, but they're not like tanking. So, it's a it's a pretty good environment to go out and buy a home right now. Uh average days on the market is 26. Uh that's up one day from last month, but it's down from 28 days year-over-year. So, it's basically flat, right? Homes are selling in less than a month on average. Um that's pretty solid.
Um we look at our months of inventory, 2.6 months of inventory, which is up from last month, up from last year. So, we're seeing more inventory, but again, it's not like crazy. Uh you know, 2.6 months is still a pretty good balance. So, it's not like we're in a buyer's market, but it's definitely shifting a little bit from being like crazy seller's market to more balanced.
And then, uh percent of list price received is 98%. So, homes are still selling for basically list price. It's down just ever so slightly from 99% last year, but still, 98% of list price is still really really strong. Um and then pending sales, 3,432. That's down 2% from last month and down 3% year-over-year.
So, overall, Indianapolis sales market still really solid, still really healthy. Maybe a little bit of softening, but honestly, not not a bad time at all if you're a buyer or an investor to get in.
Yeah. And I I personally, I mean, in these conversations with new investors and potential owners, um I really like the idea of suggesting to them uh if they're looking to get into investing, now is not a bad time. Interest rates, they do stink, right? Uh but at the same time, we are expecting that interest rates are going to come down. At least that's what we're hearing from from the Fed. At some point, they are going to come down.
Um so, it's it's if you get in now, yes, your payment might be a little bit higher, but if you're locking in a property at a slightly lower purchase price, uh the idea is that maybe in the future when rates come down, you can refinance and get that lower payment, but you've locked in the lower purchase price now before prices start going back up again.
So, it's kind of a win-win. If you can make the numbers work now, it's probably a good time to get in because you might not have as much competition as you would when rates do eventually come back down and then everybody floods back into the market.
Yeah. You said that very well.
Thank you.
That's good.
All right. That was Indianapolis rental and sales data.
