2020 Couldn’t Stop the Indy Housing Market…
While 2020 has been a year that changed so much for so many of us, it seems that some things have not been impacted as greatly by these unprecedented times. In this blog post, we decided to dig into the Indianapolis market and figure out what exactly is going on during the year of COVID. While we’ve seen many ups and downs in the real estate market here in Indy over the years, it seems that 2020 has been a year of strong growth and increased potential. It’s amazing how certain housing markets across the country have not only stayed consistent, but have even gotten more competitive during this extraordinary time and Indy is one of them.
According to Forbes, Indianapolis is one of the top housing markets to watch in 2021. Coming in at number 8 on the list of top 15 housing markets in the country, Indianapolis seems to be attracting national attention and interest. With rising numbers of out-of-state investors looking to ‘cash-in’ on the strong Indy Market, local investors are facing new competition in an increasingly low inventory market.
This increased hype makes sense if you look at the numbers. The value of a typical Indy house rose by 10.5% in just one year. And the inventory reflects this huge increase in value, with only half the number of homes on the market compared to a year ago (Forbes, 2020). Even more amazing, 65% of homes sold in the Fall of 2020 were off-market in just 2 weeks. For many of us in the real estate industry, low inventory has been the name of the 2020 game. And we don’t just have to take Forbes’ word for it, recent data from MIBOR shows similar findings, indicating that Indy’s housing market is hitting new records daily and proving a difficult landscape for folks trying to buy. But what are some of the other factors that are leading to this increased interest and scarce supply?
The Indy Hype
According to Roofstock, Indianapolis is projected to be the state’s primary population growth spot over the next 30 years. It is no wonder that Indy homes are “flying off the shelves”. We also see many large tech corporations attracting new workforce talent to the Indianapolis area, increasing the number of folks relocating to our great city. And who wouldn’t like Indy with its big city access and amenities and small town, cozy vibes!? It has the best of both worlds, and it seems like the rest of the country is slowly catching onto what we, Hoosiers, have known for some time now…
Add to this Indy’s strong rental market and again, we see the numbers back the increased interest. Renting in Indianapolis has consistently increased 17% year over year. Average rent over the past 3 years has risen by 30%, and the key demographic of renters – millennials and gen Z- make up 41% of the Indianapolis population. Therefore, the need for rental properties in Indianapolis is not going anywhere (Roofstock, 2021).
What Does This Mean for You as a Real Estate Investor?
All of these signs indicate that Indy’s housing market is strong and will continue to be for the foreseeable future. From the viewpoint of an Indy real estate investor, things are looking good. However, the glaring problem that keeps coming up is the lack of inventory. So what are some steps you can take to get an edge on the competition when it comes to finding good deals?
Working with a local, private lender like CPL is a great step towards ensuring that you are ‘in the know’ and have the best chance of finding those ‘hidden gems.’ Most of what our clients are currently finding are off-market deals, and it helps to have the key connections that CPL’s team has garnered over the last decade when the market is more and more about who you know and who they know.
If inventory has proven to be an obstacle in your real estate investment goals this year, reach out to CPL today, and see what our team of experts can do for you!