Indianapolis July 2025 Rental & Sales Market Report
The Indianapolis rental and real estate markets showed stability in July 2025 with signs of seasonality, steady growth, and continued affordability. For investors, this is a critical moment to evaluate opportunities while keeping an eye on inventory trends and affordability factors that are shaping the rental landscape.
Rental Market Update – Indianapolis
- Active Listings: 1,271 homes on the market, up 8% from last month. Some of this increase is seasonal, while some reflects owners unable to sell choosing to lease instead.
- Average Rent: $1,768 – flat month-over-month, but up 4% year-over-year.
- Days on Market: 47 days – higher than ideal for peak leasing season, up 7% month-over-month.
- Price per Square Foot: $112 for single-family homes, unchanged from last month.
- Apartments & Condos: 930 units available, average rent $1,228, $1.49 per sq. ft.
- Townhomes: 134 available, average rent $1,700, $114 per sq. ft., 51 days on market.
Overall, the rental market appears stable and predictable, which is favorable for investors. Rising supply may slow lease-ups slightly, but demand remains steady across property types.
Sales Market Update – Indianapolis
- Average Sales Price: $255,700 – up slightly month-over-month and nearly 4% year-over-year.
- Days on Market: 33 days – down 6% from last month, showing steady buyer activity.
- Sales Volume: Number of homes sold down 4–5% year-over-year.
- Affordability: Over 6,000 homes sold under $250,000 in the past year, highlighting Indianapolis as one of the most affordable metro markets in the country.
The Indianapolis sales market continues its “slow and steady” trend. While inventory has grown, prices remain stable, making this an attractive time for investors to negotiate purchases. Real estate here remains a strong hedge against inflation, with consistent long-term returns.
Investor Insights
- Expect seasonal flattening of rents as we move into late summer, but year-over-year growth remains positive.
- Sales prices continue to inch upward despite increased inventory—proof of Indianapolis’ resilient housing market.
- Affordability and rental demand make this market ideal for new and seasoned investors alike.
For hands-on guidance on maximizing your rental portfolio in the Indianapolis metro, explore our Indianapolis property management services. Or, browse Indianapolis homes for rent to see how Red Door delivers results for both owners and tenants.
Transcript Here
00:07 Indianapolis Rental Market Update
All right, let's jump into let's jump into Indianapolis here. So, we got speaking of inventory. So, we got, 1271 homes on the market. Uh, what does that mean? I mean, how relative is that? Well, it's up eight almost 8% from last month. So, uh, some of that could definitely be seasonality. Again, this is the peak of the market, but this is definitely something to keep an eye on. We talked about it again in the the um the economic updates, but this is uh a storyline to watch is what is the inventory going to do. So 1271 up 8%. Keep an eye on that for sure.Uh average rental price 1768. Uh down I mean it's basically unchanged month over month but up 4% year-over-year which is great news. Um, you know, if you do take a little peek at that uh uh peak into August, we pull these numbers really early, so it's probably a little too much or a little too early, but you know, it's probably going to happen where that the peak is probably going to be in July. It's where in a normal normal year, quote unquote, that's where we would see it. Uh, it looks like based on that, that might be the case this year as well.
Uh, days on the market a little bit higher than what I would like to see in all honesty for the peak of the peak month 47. That's a little bit higher. That should honestly that really should in theory be like in the mid 20s something like that at this time of the year. So a little stubbornly high on that. And look at that. It's up you know 7% month over month. So not like crazy. Nothing like Westfield but uh you know a little bit stubbornly high.
Uh price per square foot. So we're at a $112 uh price per square foot for single family homes. That is unchanged month over month. And then as we jump into these middle these middle figures here, we have uh apartments and condos. There's 930 apartments and condos for sale. Sorry, not for sale, for rent uh with an average rent of $1,228 for a average price per square foot of $1.49 for apartments and condos.
Now, the other one there is town homes. Uh decent amount decent amount of town homes, 134. Um and they come in real close to the single family homes. So those are $1,700 a month is your average rental price. And days on the market, also very similar, 51 days on the market. And actually, look at that. Price per square foot. I mean, it's almost right in line with single family homes. A$114 uh in terms of price per square foot.
Take a look at the three graphs down there. Uh it's looking honestly relatively boring, I would say, in a good way. Uh so that's that's kind of good news. It's again, it's I feel like I've said this a lot of times this year, but it looks like we're kind of getting back to normal, whatever whatever that may be. But the the graphs are are are looking a little bit more predictable. And if I'm an investor, I like I like predictable.
Yeah. AB: Absolutely. Yeah. So, number of active homes up almost 8%. Some of that is going to be seasonality like you said. Some of that I believe is bleed off uh from uh owners that can't sell their home. They're resorting to leasing their home. Uh which probably speaks to when you have an increase in although it's not a dramatic increase in supply. Um, that's the only factor here I see that might interact with your average days on market. So, um, aside from that, uh, I do see in the bottom left-hand graph there, the single family homes, the light blue line looks like a really nice Lincoln sedan.
Um, it does. You're right.
So, looks very aerodynamic.
Yeah, it does. Yeah. Yeah. Yeah.But, uh, no, the the graph obviously indicates rather a a stable market peak in July. It's a very early sneak peek into August, which really virtually means nothing. Uh, so if you're watching this, so uh it's way too early to to know what's going to happen there. But July, it is going to start to flatten out. And I would expect it to uh slowly slowly go down due to seasonality. Uh but the number of homes hitting the market is going to be a major factor as we watch what happens in August and September.
Yeah. What's good though, what I like about that graph there on the bottom left is the month over month for the entire year 2025 is up over 2024. I mean, sometimes we see these graphs and they're up and down and up and down and up and down. This is consistent and I got I love that. It's just so good. It's so good to know that it's not all over the board. It's consistently. It's consistently over 2024, which is great news.
Yeah. All over the board is what we were used to as we were coming out of the pandemic. So,
Yeah. Oh, yeah. Yeah. Yeah. Yep.04:21 Indianapolis Sales Market Update
All right. Let's get into the sales sales data. Let's jump into the sales. This is also interesting time for sales. Um like what's going on? Inventory is going up. Uh I don't know. It's it's a weird time, but let's see.So, average days on the market here, 33. That's really reasonable. Um that is down 5% month over month. Almost 6% really month over month. Uh this price per square foot. I looked this up. This is wrong. Um I it's not wrong in the just the data is wrong. I mean there's no way it went up 100%. It's just not right. So I I I looked at the underlying data. I actually pulled it again and that is what is comes out when you pull this report, but it's wrong. So we're going to just maybe skip over that this this month. It'll affect this month and then it'll affect next month's month over month numbers. So just I don't know put an asterisk by that one. And I don't know what happened. I don't know why, but that's the numbers out of my war were weird this month for some reason. So anyway, move past that.
Average sales price, uh, 255700, up just ever so slightly month over month, but look at that. Up almost 4% year-over-year. So, I mean, again, just slow and steady. That's kind of the it's kind of the the motto for Indiana and the Midwest in general is slow and steady, and that's what we're continuing here. So, that is really, really encouraging despite all this doom and gloom and, you know, Chris's predictions that the sky is falling. Here we here we are with slow, steady growth. great time to negotiate.
Uh but number of homes sold is down month over month and year-over-year four and 5%. So if you look at that graph there on the left, it does show again the the slow and steady. It's not not way up, it's not way down, but it is just slowly continuing to go uh up. And that's why we love Indianapolis. It is it is not the sunbelt where it's all over the place. it typically. This is this is why people love investing in the Midwest, people love investing in Indianapolis is because it is slow and steady. That that's that's what we see here.
Consistent returns uh in in an inflation related market, right? Everyone is talking about inflation. Your perfect hedge is in real estate. Uh and real estate seems to be pretty safe here in Indianapolis for the foreseeable future. So yeah, uh if you didn't catch our economic reports, you need to go back check a look at it. Uh Indianapolis is great. These numbers indicate that uh that that's true. So yeah, this is good.
The other reason people love investing in in Indianapolis area is this bottom right one. And that is just shows you how unbelievable affordable especially Indianapolis is. You're going to see as we get into some of some of these other ones are a little bit higher end of a market quote unquote for us anyway. But uh I mean look at this under 200,000 that this is over the past year. But 3600 and then another 2500 under 250. So I mean look you got what 6,000 homes that sold under 250 which is unbelievable which is if you listen to the economic update new home buyers are not purchasing those as fast as they used to because they're delaying it because of prices because of inventory or because of interest rates and just because of other they just we're just becoming more of a renter nation. It's just the mentality is changing.
So anyway there's tons of inventory under 250. It's affordable. It's predictable. It's going up to the right. I mean, it's I don't know. Indy is a great market.
Yeah. Yeah. And just to tie it back in just for a few minutes, uh, and I meant to do this when we were going over economic reports when you um highlighted the data point that your your average home buyer now is 38 and that's right. I'm 38 years old. So, that would be as if I can't imagine not being able to I do I feel lucky not being able to have purchased our first home when we did, right? And the um the financial reward we got out of that and then put into this one and the equity that we've been able to build. Now I'm 38. I mean, if I didn't have that um net worth added at this point in my life, I can't imagine the difference. It's a game changer. It's an absolute game changer. Yeah. So anyway, wanted to highlight how much that relates to to myself for sure being so young and vibrant and you know, I mean, you know, state champ at tennis, but
Oh, that's good point. Dang it. Dang it.
Oh, I got that going for you. Okay.All right. Let's uh let's jump into some of these other markets to see what's going on.
Yep.
