June 2025 Indianapolis Rental & Sales Market Update

Welcome back to the Red Door Property Management June 2025 Market Update. The Indianapolis rental market remains strong as we move through peak leasing season. With stable rent growth and ongoing affordability in the home sales market, it's an ideal time for both new and seasoned rental property investors to evaluate their next move.

📈 Indianapolis Rental Market Overview – June 2025

• Active Rentals: 1,182 listings (seasonal increase)
• Average Rent: $1,770 (+4% YoY)
• Days on Market: 44 days (down MoM but higher than expected for peak season)

The average days on market remains a bit elevated, especially for new properties listed by owners trying to recoup higher mortgage rates. However, properties priced at true market rate—especially those under professional management—are turning significantly faster.

Townhomes are seeing an average rent of $1,850 and outperform single-family homes slightly, positioning them as a luxury rental niche. Apartments hold steady at an average rent of $1,299 with $1.52 per square foot, offering a strong affordable option for renters.

🏘️ Indianapolis Real Estate Sales Market – June 2025

• Average Sales Price: $254,215 (stable YoY)
• Average Days on Market: 35 days (+6% YoY, but down MoM)
• Price per Sq Ft: $167
• Total Homes Sold: ~1,000

While there are early signs of softening in the Indianapolis sales market, the city remains one of the most affordable metro areas in the Midwest. Nearly 6,000 homes sold under $250,000 in the past year, creating ample opportunities for investors to acquire rental-ready properties with strong cash flow potential.

If you’re a buyer, now might be your best chance to submit offers under asking price before rates drop and competition rises again. While the national market remains uncertain, Indianapolis continues to shine as a steady performer.

💡 Final Thoughts for Investors

Indy continues to be a cash-flow friendly market, especially for investors who are responsive to market dynamics. Holding out for the "perfect" rent price can cost more in lost time than a minor price adjustment. As always, aligning with local market experts—like our team at Red Door Property Management—makes all the difference in maximizing your returns.

🔗 Useful Links for Investors:

• Browse Indianapolis Homes for Rent
• Explore Indianapolis Property Management Services
• Airbnb Property Management in Indianapolis

Stay tuned for our full June 2025 rental market updates in Fishers, Noblesville, Westfield, Greenwood, Avon, Brownsburg, Plainfield, Whitestown, Anderson, and Lebanon.

Looking to partner with a trusted local team? Contact Red Door Property Management today to get expert insight into maximizing your rental property returns.

• Transcript Here

  Podcast Kickoff: What’s in the June 2025 Episode

  00:00 Podcast Introduction
  [Music]
  Hey guys, welcome back. My name is Chris Knight. I'm the business development manager here with Red Door Property Management. I'm joined with Mike Taylor, broker owner of Red Door Property Management, and we're going to say hello to him in just a minute, but we're going to kick off this month's Red Door Property Management podcast, which is going to cover information for June 2025. We're going to have segments like our economic updates for June 2025. We're going to have this month's question of the week, which is a highly informative segment on how to ask the proper question when you are looking for your next month property management company. And then also, we're going to do our uh market update, which is going to go over the sales and rental data for June 2025, so you know what's going on in your local markets. And then of course, we're going to wrap up this podcast with our market in a minute, which is just an easy consumable little uh segment for you to consume what's going on in your local market. Well, in a minute, Mike, how's it going? It's uh it's a pleasure to have you.

  Excellent, Chris. I am doing amazing. It is uh well, we are like the beginning of July. It's July 3rd today. We're recording on July 3rd. It is the height of leasing season. Everything is busy. It feels good. It's sunny outside, man. It's great. Everything is busy. My AC won't shut off. And Europe, I think Europe's on fire right now, if I'm not mistaken. They are like having the hottest weather ever to be recorded.

  And then uh as Mike knows, I like to throw in some personal segments here or some personal information uh which uh which he's not always a fan of, but here here we go. So, what I'm reading right now, okay, The Silent Patient. And I know that every viewer is going to be like they know all about this book. This is like one of the most popular books in the world. All right. The Silent Patient. I told you I was reading The Fourth Wing, which is a a mix. Well, it's like a Harry Potter uh which isn't really my jam. This I'm like thriller uh psychology and and all that mystery needs to be in my books. Have you ever heard of The Silent Patient, though?

  Uh I have not. Apparently, I live under a rock and uh no, I have not heard of that.

  Find your way to a library. Find your way to a library. pick up a book and expand your knowledge. Anyway, that's that's what I'm reading right now. Uh I'm I'm confident, like I say, that every viewer uh is going to know exactly what that book is. So, be sure to leave a comment. Let me know. Have you read it? What do you rate it? Is it a is it a good book or not? Uh I just cracked it open. I'm about two chapters in. I'll let you know uh as I get closer to wrapping it up. Okay.

  02:40 Economic Update – Lebanon Expansion & Buyer’s Market Shift
  Um let's jump in. Are you ready for some economic news? Uh do you want to start this one off or you want me to go ahead and take the highlights?

  Uh, I'll jump in. I'll do one, you do one, and then I'll do one. So, I've got uh I've got two this uh this month. One is local, the other one is national.

  Okay.

  Um, let me start with a local one. So, you know, we always talk about all of our subm markets. This is, you know, one that we have been talking about, one that's up and coming, and it's it's Lebanon. Um, and, uh, there's so much activity out there. I feel like it's like it's just such an easy pickings because there's so much going on there. But here we go again. Caterpillar, uh, like the, you know, the construction company. Um, they are, I don't know if they're based out of, they have a big plant up in, uh, Lafayette. Well, they just announced that they are planning a $60 million expansion in Lebanon, and it's going to add, uh, 700 jobs out there. So, they're putting in a 600,000 square foot facility. Um, and it's going to be in Lebanon. It's going to increase their production line. Uh it's going to be like salaried workers and then hourly workers. The hourly workers are going to be they say between 23 and 26 bucks an hour and the salary people are going to be like 75 bucks an hour. So just kind of more fuel for the fire of Lebanon. They're just just gaining more and more and more momentum…
  
  

  02:40 Economic Update – Lebanon Expansion & Buyer’s Market Shift
  …So just kind of more fuel for the fire of Lebanon. They're just just gaining more and more and more momentum. Uh we talk about it in our market reports. They you know it's still in the market reports the numbers aren't there yet. I mean that like it's like weirdly small the amount of rentals that are there but it's coming and this is just more example of more money more jobs more momentum for Lebanon and I'm telling you it's like Lebanon is going to be this like bridge between Indianapolis Zensville Whitestown it's going to be like the midpoint between there and Lafayette I think it's just going to be this like huge corridor eventually I mean you we're talking years and years down the road but it's this corridor between Indie and uh and Lafayette it's it's constantly built building. It's this amazing um uh the the freeways there are amazing. There's so much uh industrial that's in Whitestown like that services like all of Amazon and things like that. There's just so much going on there that you're going to just I think you're going to see it just from Whittown to Lebanon eventually just going to be booming. And so just just more more evidence of of you know thumbs up for for Lebanon. More momentum.

  Oh man, the economic outlook for Lebanon appears to be amazing. I didn't. Yeah, I had no idea. So, Caterpillar is going to expand. Did I'm sorry, did you say when that's slated to start?

  Uh, they just announced it, so I don't know if they Let me just read this article here real quick. Now, it doesn't mention like a start date or anything like that. Uh, they just announced it, so I don't know. I don't have a timeline on it, man.

  So, if you're listening to this right now, uh, be sure to check out the market reports, which I have not even glanced at this month's market report, but just speaking from the previous months, Lebanon has, uh, been a a great area. Affordable area is the word I'm looking for. It's been in a very affordable area right now with nothing but uh like you said a very positive economic outlook in comparison to a lot of the other areas which there's a lot of things happening around Indianapolis uh and surrounding suburbs which um I I do feel and I have nothing to back this up with other than just uh just just my own my own gut feelings but I do feel like things are shifting. I think everyone has that feeling right now. things are shifting a little bit and that's and in fact that's going to take me uh into let me just the I look you know me I can't start start this off without highlighting more evidence to support the buyer market which is uh shoot arguably already here arguably already here all right so look this is quick I'm just going to mention this and I'll let you take back over for another article but this is provided by Axios for June of 2025 they're uh uh the recent report that's come out as of April 2025 uh leading into June 1,500 more sellers than buyers creating a 21% surplus on the market. Nationally, Redfin reports a 33.7% jump in seller listings, the biggest shortage gap since 2013.

  Uh rate lockins are loosening. So, whatever people are listing their homes for is is it's not sticking, right? They're they're making changes. Um, still with high interest rates and prices limit many home buyers, some local price dips are appearing. Oh, here it is. It's on Rocket Mortgage. And I just wanted to share this really quick. If you'll allow me, indulge me for just a moment.

  Please do it.

  Yeah. Um, I'm going to share this screen and it's just a very quick little poke in the eye. Okay. All right. Here we go. So, uh, for Rocket, so I'm looking at Marian County here right now. All homes and I was, uh, that have sold and let me see if I can all homes. Oh, sorry. There it is. So, the medium home price that have sold is now ticking down.1%.

  Do you think that that's an indication that we are heading any closer to a buyer market?

  Me? Yeah. Um, man, I still maintain it's I still think it's slightly tilted towards a sellers market in going into a balanced market. And we could take a look. We're going to go over the numbers here in a little bit for we have rental rental data and sales data. I think it's so hyper local that those national numbers don't honestly matter to a certain extent in our local market. Uh because I read those articles all the time Marian County. Yeah, but it was.1% and it was one month.

  I'm just true.

  Far from the bottom falling out. You know what I mean?

  Okay. All right. Let me go ahead. I will say I will say there is a change of momentum for sure. Um but again, I I I still think it's it's leading to a balanced market. I think that the national trends that you're reading about, you know, because you hear it on Zillow, there's a lot of a lot of talk about, you know, um more supply and there is more supply. It's taking longer. There is more supply for sure. I just argue that it's just a little bit of a balanced market and people have been so out of whack uh for the past, I don't even know 10 years. It feels like forever. It's been a sellers market. And I just feel like it's getting more balanced. And I think people don't have the perspective to realize that we've been in a crazy wacky market for 5 to seven years. And now that it's a balanced market and it takes, oh my god, it takes 40 days to sell your house. Well, that's normal that we're in a normal market. So, that's what I think. I think it's normal. I think people are freaking out. I think the sunb belt is probably feeling it more than we are. You know, Florida, Arizona, California, all those places are probably, you know, a little bit more warranted of those discussions. I think here in India, we're a little bit more insulated from that. And I think it's a little bit, again, more balanced.

  Yeah. Okay. All right. I I mean I'll accept your your your balance marker, but uh I do think it's inevitable that there's it's it's it's already shifting there. It is more quote unquote buyers market. Whether whether you want to slap uh the label of a balanced market, it's it's it's going to not only that, I mean, home builders are just really struggling at unloading properties right now. And this is uh what I wanted to kind of tail this into and the reason it wasn't just a poke in the eye uh which it's probably a lame poke in the eye like you indicated at 0.1% but still nonetheless is that this is going to shift the market a little bit on the rental side because when people can't sell their homes uh and if in fact if you're one of those individuals who are struggling at selling your home you should be looking at putting it up on the rental market because when people aren't buying they are still moving. So, what are they doing? They're renting. The rental market is booming. You should be looking at hiring a property manager to to look at the rentability of your property. Now, if you just purchased the property a year or two years ago, are you going to be able to cover all of your expenses on the property? Probably not. But, uh especially if you're at a 6 7% interest rate, are you going to be able to stop the bleeding because you took a job offer in California, but you you're stuck with this property? you need to be looking at the possibility of renting this property with a reputable property management company.

  So, that's that's what they wanted to dovetail that into um we'll get we're going to continue to to monitor this. I'm going to continue to poke Mike right in the eye as uh as this market continues to shift as we shift more towards a balanced market. Uh but uh yeah, if if you're struggling at selling your property, let's have a discussion uh about what other alternatives that there are to you rather than just taking a major hit and reducing the price in order to unload it.
  
  

  11:30 Economic Update – Zillow Forecast, Affordability Gap & Investor Tax Benefits
  Now, if you'll allow me, let me just do some quick highlights. I know you have another article that you want to go over, but I don't want to be all doom and gloom here because uh Zillow uh recently came out with another u market forecast. I don't know if you caught this or not.

  Indianapolis is now ranked number two nationally and number one in the Midwest uh in Zillow's 2025 uh forecast because they are still projecting that uh in Indianapolis that home prices are going to continue to tick up roughly 3.4%. 4% uh in 2025 fueled by affordability and uh and rising incomes.

  And this and this podcast. Fueled by affordability and this podcast.

  Absolutely. We are we are we are single-handedly pushing the Indianapolis market without a doubt. I mean no I mean Indianapolis makes it easy, right? Because I mean Zillow is right. It is it is fueled by affordability and uh I don't know about so much rising incomes but as long as uh as long as Caterpillar continues to you know build facilities here then that is going to contribute to the the the incomes continually going up. So the market remains competitive and uh with limited inventory and high buyer demand. So uh Zillow's predicting nothing uh but highlights for the Indianapolis market.

  The other thing too, and this is not locally, this is nationally too, but uh I I I can't tell you how many articles I read a week, a month about the affordability gap um for young or first-time home buyers. It's like almost impossible for a first-time home buyer to afford something right now between the interest rates, between the price, between the prices. I mean, it's it it's very very difficult for a young person to be able to purchase a home. And so they they kind of trend towards renting. Not that kind of they do, they absolutely do. And so we're just we've talked about it for a long time, but it's just we're becoming a nation of renters. And it's the demand is just there because because of the prices, because of that.

  And so I mean, uh, as an investor, it affects you too also because yes, the prices are up and to your point, can you cash flow? Um, well maybe. Maybe you can if again if you have the low interest rate, but if you're trying to get into the market right now, you know, maybe it's tough to cash flow for the first couple of years, but um you know, if if you can weather that storm, well, first of all, you're going to have an amazing tax credit uh or a tax benefit there. So, while you maybe let's just say you lose 100 bucks a month. Well, if you account in for the depreciation and all of the tax benefit, I mean, you're going to and the appreciation, I mean, that adds up to five, six, seven, 800 bucks a month at least, uh, in other benefits that again, if you can weather that short-term storm of the cash flow in the long term, two, three, five, 10 years from now, you're going to be laughing all the way to the bank.

  Yeah. Yeah. Exactly. There are more more ways, more advantages uh, to owning real estate than cash flow. Yes. So, so very, very good point. So, those are those are my highlights. What else you got?
  
  

  14:22 Big Beautiful Bill – Tax Law Impacts for Investors
  Cool. Actually, uh that last comment kind of dubtales into my next um article and uh I'm not going to get political about whatever. But, uh the you know, Trump is just about to it looks like this, you know, what he's calling his what big beautiful bill. Have you seen this?

  Oh my god. Yeah. Have I seen?

  I mean, wow. He really good at marketing there. Uh but um whatever. However you think about it, I don't I don't care. Neither here nor there. But what it looks like it's passed the uh it's passed the Senate and I think it's going to the House maybe even like today.

  It is. Yeah. In fact, yeah, one of the Democrats is on a 5h hour uh talking uh filibuster right now as we speak.

  Sure. So, I mean there's again there's a ton of angles we could take on this. I I don't care to discuss one way or the other, but what I do want to discuss is how it will affect investors. And there's some really positive things uh that is going to infect infect uh affect investors if it passes as is. Uh one of the biggest ones is well let me start with a a small one is the uh mortgage uh interest rate deduction will be made permanent. There was kind of some talks in the years past that they were going to try to like wayne that out and that wouldn't be a thing anymore. So that would be now made permanent. Also, mortgage insurance premiums uh would now be deducted. I don't think that was allowed before. Um the biggest news I think for investors for real estate is the 100% bonus depreciation.

  And uh I don't want to get all tax nerdy and everything, but it does warrant a bit of a conversation here. So, um they phased this out. I think it was in the middle of being phased out over a 5-year period. So, I'm not a tax guy, but this is my understanding of it. Okay, so you have a 100% bonus depreciation. If you purchase a home and you put it into use as a rental home, okay, normally you just do what they call straight line depreciation of, I think it's 27 12 years, you say, "Okay, I bought the house for, I don't know, let's say $300,000, uh, minus the land value." And then you just take, uh, whatever that is, and you divide that by, again, I think it's 27 and a half, maybe 29 and a half. uh and then you just take that off of your taxes every single year. Well, what you can do now is uh you can do what's called a cost segregation study. Okay? And you can get these online. I did it a couple years back. I think you pay about 600 bucks for this cost segregation study. You enter all the information about your house and what it does and it goes through and um it's kind of a sophisticated tax code uh way to accelerate your depreciation. So what it does, it says, "Okay, well now it's not just divided by 29 and a half. It says, "Okay, well you have carpet in there. Okay, well your carpet is worth $5,000 and that's depreciated over 3 years or 5 years." Uh you have a HVAC system in there that's depreciated over 15 years. Uh and it really breaks down all the different components of your home. Okay? And so that's what a lot of people would do. So like it accelerates your your tax depreciation. But with 100% bonus depreciation, you can segregate all of that out. Okay. And then you take it all off your taxes this year. So you can say like I mean it's like a lot of money that you can save on your taxes. No, it's it's tax deferred. Okay. So you're not not paying taxes on it, but you are this year you're saving on your taxes like tremendously. And so there's a a thing out there. It's called the uh the lazy Roth IRA or the uh lazy Roth exchange. I can't remember what it is. Anyway, so Dway is like constantly if you're constantly purchasing and you're constantly investing, then you're constantly pushing that tax down the road. And uh so it it it's just a tax strategy that is tremendously beneficial for real estate investors. Again, I'm not trying to be a tax professional here, but I have personally used it. I've personally benefited from it. Um and you can save a ton on taxes if you invest in real estate. It's really cheap. It's really easy to do. And it looks like that is coming back. and uh I think going to be permanent. Um

  wow.

  Yeah.

  Wow.

  Big news. Big news.

  Yeah, that's huge news. Wow.

  Huge news. Huge news. Uh last thing, and this is a little bit nerdy again. Um I like these tax I'm kind of a tax nerd. Um the uh called an opportunity zone.

  You ever heard of this?

  No. No.

  Opportunity zone. Okay. This isn't really super related, but um opportunity zones are the government has has designated these zones, opportunity zones, what they call them, as um areas that they want to have investment in for whatever reason.

  Yeah, I know what you're talking about.

  And so it's it's this tax benefit of I think you have to have a like a capital gains of some sort. Uh and then if you take those proceeds and you put it into this uh opportunity zone, uh there's some rules around I think you have to hold it for 10 years or something like that. the benefits that you get out of that say 10 years later are then taxree. So it's a way to basically make your money tax-free. So anyway, I don't want to get too much into that. That's not exactly what we're doing. But anyway, the there's a lot of benefits for um real estate investors in this in this new um big beautiful bill which it looks like is going to pass.

  Yeah. Okay. Yeah. I mean, yeah, the opportunity zones I did see a report. It's probably a month or so ago, and there are some opportunity zones around uh Marian County. So,

  yeah, it is at least worth worth mentioning for sure.

  Yeah. So, those are my two articles for this for this for this week or this month, I guess.

  I think that last one was an absolutely wonderful one. Yeah. When it relates to uh mainstream uh massive news right now with that big beautiful bill. So, I appreciate you bringing that.
  
  
  That's going to wrap up this month's economic updates for June 2025. Uh be sure to check back in. We're about to get into this week's uh sorry, this month's question of the week. Uh and then of course we're going to dive into the market reports, which I know that everyone wants to um wants to stay in tune with. So check back in for those and we'll see you when we get there.

  [Music]