📊 Lebanon Market Update – May 2025
Lebanon, IN continues to show signs of becoming a high-growth rental market, thanks in part to major investments in the Leap District and its strategic location northwest of Indianapolis.
🏠 Rental Market Overview
- Active Rentals: 5 single-family homes (⚠️ very limited data)
- Average Rent: $1,680 (↓ month-over-month and year-over-year)
- Average Days on Market: 23 days (⏬ down 18%)
- Price per Sq. Ft.: $123
- Apartment Market: 51 units | Avg Rent: $1,575 | $0.84 per sq. ft.
📌 While rental prices dipped, the velocity of leasing (low days on market) and high demand for apartments signal strong underlying rental momentum. Lebanon remains an affordable alternative to nearby suburbs.
🏡 Sales Market Snapshot
- Average Days on Market: 34 days (⬇ 27% from April)
- Sales Price per Sq. Ft.: $180
- Average Home Price: $298,278 (⬆ 10% YoY)
- Homes Sold: 30 (⬆ YoY and MoM)
📈 The sales market is trending up steadily. This is driven by increased buyer demand likely tied to Lebanon’s economic development. Despite recent gains, prices remain attractive for entry-level and value-focused investors.
📍 Market Insights & Investor Takeaway
Lebanon is a speculative but promising market, riding the wave of massive infrastructure investments and proximity to growth hubs like Noblesville. Although the data set is still small, indicators show:
- 🌱 Continued sales growth & upward pricing pressure
- 📉 Vacancy tightening as apartments fill fast
- 💼 Room for long-term equity play as the area scales
💡 Investors looking for affordable entry points may find Lebanon a strategic long-term play, especially when managed by experts in Indianapolis property management.
Transcript Here
Small Sample, Big Potential in Lebanon
Lebanon's rental market is still small, with only 5 homes on the market in May 2025. Because of this limited inventory, every data point should be taken with a grain of salt. However, Lebanon is a growing market—anchored by billions in investment tied to the LEAP District and broader regional economic development.
Rental Price Drops, But Demand is Solid
Average rental price for single-family homes came in at $1,680, down both month-over-month and year-over-year. Despite the dip, the average days on market is just 23—comparable to stronger westside markets like Avon and Brownsburg. That’s an 18% improvement over last month. Price per square foot is $123, which is also down slightly.
Affordable Apartments Abound
There are 51 apartments for rent in Lebanon, with an average price of $1,575 and a remarkably low $0.84 per square foot—by far the most affordable in the region. The difference in price between apartments and single-family homes is minimal, which may be worth noting for investors comparing asset types.
Rental Trend Overview
Graphs show a slight dip in single-family rental prices year-over-year, while apartments appear to be holding stronger. Because apartment data is more plentiful, it may reflect the more accurate trend. Despite limited single-family data, Lebanon remains on the radar as a market with future upside.
Sales Market Holding Strong
Days on market for sales is 34, which is consistent with nearby markets. That’s down 27% from April, though slightly higher than last year. Price per square foot is $180, up 3% month-over-month. The previous claim of a 96% drop year-over-year is clearly a data error.
Sales Prices Rising Steadily
The average sales price in Lebanon is $298,278—up 1% month-over-month and 10% year-over-year. That steady climb reflects rising demand, and the trend appears likely to continue based on regional economic activity and housing scarcity.
Sales Volume and Trends Support Growth Story
Thirty homes sold in May, marking increases both month-over-month and year-over-year. The average sales price over time shows a general upward trend, with a minor dip in February and stability since. Price distribution charts show most homes are still selling under $300K, with a peak around the $250K mark.
Lebanon: Still a Value Play—For Now
Though not as inexpensive as Anderson, Lebanon still offers value. More than 100 homes under $250K sold in the past year, and investor interest is clearly rising. While it’s not “ground floor,” Lebanon is still in early innings. There's plenty of room for appreciation as growth accelerates.
Podcast Wrap-Up and Contact Info
That concludes our Lebanon market update and the full May 2025 edition of the Red Door Property Management podcast. Be sure to check out our rapid-fire Market in a Minute videos across social media. Each platform features slightly different content, so follow us to stay fully informed.
If you’d like a custom rental analysis, reach out directly to Chris Knight, Business Development Manager, at cknight@rdpmindy.com. Just send over a property address and he'll get you a personalized report fast.
Thanks for tuning in—see you in the next episode!
