Indiana Rent Report – May 2019

• The U.S. average rent increased by 2.5% ($35) year over year and reached $1,442 in May 2019, up by 0.3% ($5) month over month, according to Yardi Matrix data.
• Renting in the most budget-friendly large renter hub, Indianapolis, IN, reached $863 following a $1 m-o-m increase
• Carmel apartments are the most expensive among the state’s largest cities, while apartments in Gary have the cheapest rents. 

Apartment rents increase by 2.5% as the prime rental season kicks off

Average rent prices went up by 2.5% year-over-year in May and reached a $1,442 monthly average. Nationally, rents maintain a strong month-over-month growth, but the annual increase is the slowest we’ve seen in 18 months.

Residential rents are rising steadily across markets, with the third month in a row sprouting a 0.3% month-over-month jump. Compared to last May, renters pay $35 more on average, according to the latest Yardi Matrix data on apartment market trends

Renting in Indiana’s largest cities in May 2019

The average rent in Indiana is generally lower than the national average rent. Among the state’s largest cities,  apartments in Carmel are the most expensive for renters, with an average rent of $1,133 per month, followed by apartments in Bloomington, where the average rent reached $1,114 this May. At $1,094 per month, Fishers boasts the third most expensive prices among the state’s largest cities.

On the flipside, the most affordable large cities for renters in Indiana are Gary ($693 per month) and Fort Wayne ($771 per month).

Indianapolis boasts an average rent of $863 per month, with a 3.5% (or $29) year-over-year increase, and up by 16.15% (or $120) over the last 5 years.

Bloomington apartment prices are picking up speed, experiencing a 5.3% y-o-y spike, the highest rent increase over the year. Renters here pay $56 more per month than they did in May 2018. Lafayette apartments saw the second highest annual increase in the state, up by 3.8%, or $29 more expensive than last year. In Indianapolis, rents grew by 3.5% y-o-y, while in Fort Wayne they registered a 3.2% increase.

The slowest rising rents were in Gary, where prices grew by 1.2% y-o-y, and in Muncie, up by 1.3%.

If we look at 5-year changes, Noblesville saw the sharpest rent increases, of 19.4% ($163) since 2015. In Bloomington and Indianapolis rents rose by 16.9% ($161) and 16.2% ($120), respectively.

The fastest and highest rent increases in smaller Indiana cities

Following the national trend, the most significant year-over-year changes in May 2019 were experienced in some of Indiana’s smaller cities. Granger apartments are the most expensive in the entire state ($1,290/month), followed by apartments in West Lafayette and Zionsville, boasting an average rent of $1,172 and $1,166, respectively.

The most affordable mid-size and small cities in Indiana are Shelbyville ($704), Beech Grove ($748), and Elkhart ($750).

In terms of annual rent increases, Speedway boasts the sharpest rent growth of 9.4%, with renters having to pay $68 more each month than in 2018. Next up are Brownsburg (8.6% or $82) and Granger (7.6% or $91).

To compare the rental market in Indiana with other cities in the U.S., you can also check our national rent report.

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