Anderson, Indiana Rental & Sales Market Update – October 2025
Anderson continues to be the most affordable market we track in the Indianapolis metro area. While often overlooked, October 2025 data shows meaningful improvement on the rental side and consistent opportunity for investors focused on affordability and cash flow.
Anderson Rental Market Overview
One of the biggest highlights this month is rental growth. The average rental price in Anderson has climbed to approximately $1,100 per month, marking a strong 15–16% year-over-year increase. For a market that not long ago struggled to stay above $1,000, this is a notable shift.
There are currently 70 active rental homes on the market, up roughly 18% month-over-month. While inventory has increased, rental demand remains solid enough to support continued upward pressure on rents.
Average days on market currently sit at 54 days. While slightly higher than ideal, this is far from alarming—especially when compared to more saturated suburban markets. With proper pricing, condition, and professional management, many homes continue to outperform the market average.
Single-family rentals average roughly $0.89 per square foot. Anderson also remains an apartment-heavy market, with apartment rents averaging around $850–$860 per month, reinforcing its value-oriented profile.
One encouraging sign is seasonality resistance. Unlike many markets that experience sharp rent dips heading into winter, Anderson’s single-family rental pricing has remained relatively stable late into the year.
Anderson Sales Market Overview
From a purchase standpoint, Anderson remains one of the most affordable investment markets in Central Indiana. The average sales price is approximately $182,000, showing increases both month-over-month and year-over-year.
Homes are spending an average of 39 days on the market, which is a healthy pace for this time of year and indicates steady buyer activity without excessive competition.
Average price per square foot for sold homes sits around $125. A total of 86 homes sold last month, demonstrating consistent transaction volume.
The most important investor insight is where homes are actually selling. The vast majority of transactions occur under $200,000, and it remains difficult to justify purchases above $250,000 in this market. Investors who stay within the core price ranges benefit from stronger demand and more predictable performance.
Investor Takeaway
Anderson continues to offer one of the lowest barriers to entry in the Indianapolis metro area. While appreciation may be slower than in higher-priced suburbs, improving rental rates, affordable acquisition costs, and steady demand make Anderson an attractive option for investors prioritizing cash flow and long-term stability.
As rental prices continue to normalize above $1,000 and purchase prices remain accessible, Anderson stands out as a practical, data-driven market for both new and experienced investors.
Transcript Here
Preview — 0:00
The bulk of the market is under $200,000, which is unheard of. Indianapolis is affordable, but Anderson is even more affordable. The vast majority are under $200,000, and it’s hard to spend over $250,000 in this market. I definitely wouldn’t spend more than $250,000 here. I wouldn’t even spend $250,000 in this market.
Rental Data — 0:22
We just finished up the Greenwood market report, so let’s jump into Anderson. Let’s start with the rental side. Mike, I think this one’s yours.
Mike: Yeah, I usually take Anderson. If you’ve been following, you know this is definitely the most affordable area we report on in terms of rental price and purchase price. But look at this — the average rental price is actually up. For a long time, it was below $1,000, and we couldn’t believe it was sitting around $895. Now look at this. Most of the year, we’re above $1,000, even pushing above $1,100. That’s really great to see.
That’s the number that jumps out to me right away. Anderson’s average rental price is continuing to climb. It’s sitting at $1,100 and up 15–16% year over year. That’s amazing.
We’ve got 70 active homes in the Anderson market, up 18% month over month. Average days on the market are 54. That’s a little high. I’d like to see that in the 30s or 40s, but it’s not alarming. Nothing like Westfield. Just a bit higher than I’d like for this time of year.
Average price per square foot is $0.89 for single-family homes. Anderson is also very much an apartment community. There are 90 apartments on the market, which is actually more than single-family homes. That’s something to consider. Apartments are more of a value play at $856, similar to what we were seeing with single-family homes last year. Average apartment rent is $856 with about $1.10 per square foot.
Looking at the graphs, especially the bottom-left single-family homes graph, you can see a big difference between last year and this year. It’s pretty stable overall. Normally, you’d expect to see a dip toward the end of the year, but we’re not seeing that in Anderson, which is really encouraging.
Aside from that, the two big things here are the average rental price at $1,100 — which I don’t think has fully baked in seasonality yet — and the average days on market, which are a little ugly. Hopefully that’s a blip. Even with seasonality, I’d like to see that closer to 45, and if you’re with a good management company, maybe closer to 30–35 days.
There’s also one townhome running at $800 that’s been on the market about 63 days. I didn’t even mention it earlier. That’s Anderson’s rental market. You ready for sales?
Sales Data — 3:21
Let’s take a look at sales in Anderson. This is a super affordable market. I sometimes jump around these graphics because one thing jumps out immediately — the bottom-right graph showing the number of homes sold by price point.
You can see it instantly: the bulk of the market is under $200,000. That’s unheard of. Indianapolis is affordable, but Anderson is even more affordable. The vast majority of homes are under $200,000, and it’s hard to spend over $250,000 here. I definitely wouldn’t spend more than $250,000. I wouldn’t even spend $250,000 in this market.
You want to be in the meat of the market here. This is the affordable play.
Jumping back up, the average sales price in Anderson is $182,306, up month over month and year over year. Average days on the market for sales are 39, which is pretty good for this time of year. Average price per square foot is $125. There were 86 homes sold last month from an investor point of view under $500,000, which is almost irrelevant in Anderson because nearly everything is under $500,000.
Looking at the sales price over time graph, we had a weird August dip, but the trend line overall is up and to the right. For most of 2025, prices have been above last year, so average sales prices are heading in the right direction.
I kind of want to meet the five people who bought homes between $450,000 and $500,000 and ask what the story is. They must have acreage or something unique going on.
That’s your sales data. Average days on market are continuing to tick up. We’ll wrap this up later with a bigger-picture conversation about the overall market. Let’s move on to the next one.
