Indianapolis Rent Growth 2024: The Nation’s Rent Leader
In November 2023, Cincinnati was leading the country in rent growth. Now, through the back half of 2023 and into 2024, one metro has quietly stolen the spotlight: Indianapolis. After trailing major markets like Miami and Atlanta, Indianapolis rent growth 2024 has surged to lead the nation—fueled by a stable supply pipeline and steady Midwestern fundamentals.
According to data from Apartments.com, Indianapolis posted 7.4% rent growth in December, surpassing Miami’s 6.8% and marking a notable shift in national market trends.
Why the Midwest Is Beating the Sunbelt, and Other Major Markets
The momentum shift from coastal and Sunbelt markets to the Midwest is not just a fluke. It’s structural.
Over the past year, rising construction activity across Miami, Charlotte, Austin, and Phoenix has delivered thousands of new Class A units—outpacing tenant demand and triggering rent softening. In contrast, Indianapolis has maintained a balanced supply-to-demand ratio, creating upward pressure on rents with minimal volatility.
For example, Miami had been at the top of the national rent growth rankings, with rent growth in July of 14.6%. By November, rent growth in Miami had slowed to 7.7% as new construction boomed.
Here’s the contrast:
- Miami currently has 28,383 units under construction, representing a whopping 15.6% of total inventory.
- Indianapolis has just 5,245 units in the pipeline—only 3.2% of inventory.
Additionally – Cincinnati, which ranked third behind Miami for December rent growth, has a multifamily construction pipeline that would increase inventory by a modest 4.2%. This more measured growth keeps occupancies high and rent growth stable. Investors operating in the Midwest benefit from less supply-side risk and more predictable cash flows.
Migration & Economic Uncertainty Shift the Playing Field
As affordability worsens in major markets and economic uncertainty tempers mobility, Sunbelt in-migration has slowed, per recent CoStar research. Inflation, job market fluctuations, and the rising cost of living have made cities like Miami less accessible for new renters.
Of the 40 largest apartment markets tracked by Apartments.com, Las Vegas and Phoenix were the only two markets to see rent declines in December. For the full third quarter of 2023, however, rent declines were more widespread. Seattle had the largest rent decline during the fourth quarter of 2023, with rents dropping 2.6%. Denver was one of eight markets where rents dropped by 2% or more. The other markets with rent declines of 2% or more included Raleigh, Las Vegas, Charlotte, San Jose, Salt Lake City and Atlanta.
Meanwhile, markets like Cincinnati, Louisville, and Dayton—all posting solid rent growth alongside Indianapolis—are emerging as lower-cost, high-yield alternatives for both tenants and investors.
What This Means for Multifamily Investors
Multifamily investors evaluating the 2024 landscape should pay close attention to the Midwest’s relative stability and strength. In Indianapolis and similar markets:
- Supply pipelines are manageable
- Rent growth is sustainable
- Cap rates remain more attractive relative to overheated Sunbelt cities
While flashier metros grab headlines, the Midwest is quietly offering better risk-adjusted returns.
Final Thoughts on Indianapolis Rent Growth 2024: Don’t Let the Cocktail Party Markets Distract You
Yes—Miami is glamorous. Phoenix feels exciting. But for disciplined multifamily investors, the metrics in the Midwest speak for themselves.
When you invest in multifamily real estate in markets with strong job growth and high in-migration, you’re not just competing with other investors—you’re also up against developers and the banks eager to finance them.
These dynamics often create supply-demand imbalances that derail even strong business plans and experienced sponsors. Resulting, at best, in significantly longer hold periods as the market rebalances.
The Midwest Difference
Midwestern markets usually avoid the dramatic supply-demand imbalances seen elsewhere, yet they continue to deliver financial returns that rival—and often exceed—those in trendier markets like Phoenix and Las Vegas.
On a risk-adjusted basis, the Midwest offers a more compelling destination for multifamily investment dollars.
Indianapolis rent growth 2024 is a signal, not an anomaly. It reflects a market where economic fundamentals align with smart real estate investing: measured job growth, limited oversupply, and tenant demand that isn’t artificially inflated.
As we look ahead, markets like Indianapolis may not just outperform—they will likely redefine what winning looks like in this new investment cycle.
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