The apartment property market of Indianapolis, Indiana, posted strong numbers in 2010 as more people preferred to rent rather than purchase homes despite the presence of thousands of low-priced residences under foreclosure listings. Apartment occupancy in the area was up by 1.7%, with occupancy rate pegged at 90.8%.
According to Real Estate analysts, although Indianapolis HUD houses and bank foreclosed residences are being offered at affordable prices, more people opted to rent. They stated that the end of the federal government’s tax credit program and tighter rules in mortgage borrowing have contributed to lowering the number of people willing to put their money on home purchases. Most analysts expect the apartment property industry to continue to thrive in 2011, particularly if more jobs are created in the metro area during the year.
Although foreclosure listings dominated the housing market in 2011, apartments held their own in the region, with the downtown area recording the strongest occupancy growth. Downtown Indianapolis posted an occupancy growth of 1.6% during 2010, bringing the occupancy rate to 91.7% and increasing monthly rent by 3.3% to an average of $805. Analysts stated that the expansion of the downtown apartment occupancy is mainly due to higher number of students enrolling at the IUPUI, with most of them preferring to stay near the campus.
Several apartment buildings were added to Indianapolis HUD homes and other residential properties in 2010. One of them is the Cosmopolitan at the Canal. Currently, more apartment properties are being built in the area, including a 253-unit complex worth $30 million which has been designed as a student housing structure owned by Trinitas Ventures. Buckingham Cos. is also reportedly planning another apartment project at The Avenue that will be comprised of 210 units.
Meanwhile, downtown apartment units are being rented with monthly rates ranging from $1.30 to $1.40 for every square foot. This rate is between 30% and 40% higher than apartments rented in the suburban area of the metro region. And although foreclosure listings continue to increase in the city, older apartment buildings, even those built before 1960, are reportedly renting at almost the same price as apartment units built after the 1960s.