IRR-Indianapolis Mid-Year Viewpoint 2015 Local Market Report - Multifamily
Within the Indianapolis MSA, the strongest level of new construction has occurred in the Central submarket and the Hamilton County submarket. The Central submarket is approaching saturation levels. The submarket is experiencing increased vacancy in 1Q 2015 which increased vacancy is projected to continue into the next 18-24 month time frame. The absorption of new construction is projected to be achieved by households having above average income which would relocate to the area for management type employment positions as well as millennials already living in suburban locations desiring downtown living.
The saturation and increased vacancy projections have resulted in the perception of increased risk for many types of investors. In the northern portion of the Indianapolis MSA, Hamilton County has also had substantial multifamily growth mostly in the Carmel and Fishers locations. The planning department in the City of Carmel considers the current level of construction for multifamily to be at saturation levels. A total of 3,500 units were approved in 2014 and all but approximately 750 units are under construction.
The Town of Fishers has not experienced the same level of multifamily growth but it is in an expansion mode. In both communities, absorption would be facilitated by both relocation of households already in the community as well as new households moving to the area.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.