Steady Rent Growth and Rising Home Prices Mark Indiana’s Balanced Market
Indiana’s housing market, led by the Indianapolis metro area, remains one of the Midwest’s most stable in 2025. With moderate rent growth, solid employment expansion, and increasing housing supply, the state continues to attract families, investors, and remote professionals seeking affordability and long-term value.
Residential Real Estate Trends – October 2025 Snapshot
| Metric | Indiana (Oct 2025) |
| Median Home Price | $289,500 (+3.7% YoY) |
| Home Sales (annualized) | 141,200 units (+2.5% YoY) |
| Median Days on Market | 26 days (up from 22 in 2024) |
| Housing Supply | 3.6 months (vs 3.0 months Oct 2024) |
| Average Rent | $1,445 (+$45 YoY, +3.2%) |
| Available Rentals | ≈ 10,824 statewide (Zillow) |
Home Prices Continue Modest Growth Across Indiana
Indiana’s median home price rose to $289K, up 3.7% year-over-year, signaling healthy appreciation supported by strong buyer demand and limited supply. While mortgage rates above 6.8% have slowed transactions, the state remains an affordable alternative to neighboring Midwest markets.
Homes now spend an average of 26 days on the market, reflecting slower seasonal activity but continued buyer confidence. Suburban areas around Indianapolis, such as Carmel, Fishers, and Greenwood, lead new construction and resale activity.
Rental Market – Slight Cooling but Continued Uptrend
According to Zillow Rentals (Nov 2025), Indiana’s average rent is $1,445, reflecting a $45 YoY increase (+3.2%), with a mild month-over-month decline of $9.
- Month-over-month change: –$9
- Year-over-year change: +$45 (+3.2%)
- Available rentals: ≈ 10,824 statewide
Rents have grown steadily across most metro areas, though recent months show mild seasonal softening. Affordability and population growth continue to drive strong rental demand, especially in Indianapolis, Fort Wayne, and Bloomington.
Regional Highlights:
- Indianapolis Metro: Avg. rent ≈ $1,550 (+3.4%) – steady demand from professionals and students.
- Fort Wayne: Avg. rent ≈ $1,300 (+2.8%) – strong workforce housing market.
- Bloomington: Avg. rent ≈ $1,650 (+3.0%) – stable student housing demand near Indiana University.
- Lafayette: Avg. rent ≈ $1,450 (+2.5%) – continued tech and industrial job growth.
💡 Landlord Tip: Focus on long-term tenants with stable incomes. Offering small upgrades—like smart thermostats or washer/dryer units—can justify premium rents and reduce vacancy.
Investor Activity – Consistent Returns and Growing Interest
Indiana remains a top-performing market for investors looking for predictable yields and affordable entry points.
- Investor share: ≈ 18% of transactions (Q3 2025)
- Top markets: Indianapolis, Fort Wayne, Evansville, Lafayette
- Typical investment: Single-family homes under $300K or small multi-family units
- Gross rental yields: 6–8% depending on market and property type
The combination of stable rents, low property taxes, and population inflows positions Indiana as a reliable long-term investment hub.
City-Specific Market Highlights – Fall 2025
| City | Median Price | Avg. Rent | Key Insight |
| Indianapolis | $325K (+3.8%) | $1,550 (+3.4%) | Growing demand and new multifamily supply balance prices. |
| Carmel | $485K (+4.0%) | $1,950 (+3.2%) | High-income suburb remains highly competitive. |
| Fishers | $450K (+3.5%) | $1,850 (+2.8%) | Family-friendly market with rising home values. |
| Fort Wayne | $265K (+3.0%) | $1,300 (+2.8%) | Affordable and stable rental returns. |
| Bloomington | $375K (+3.1%) | $1,650 (+3.0%) | Consistent demand from students and faculty. |
| Lafayette | $305K (+3.3%) | $1,450 (+2.5%) | Steady industrial and logistics sector supports growth. |
Mortgage Rates and Affordability – Fall 2025 Overview
Mortgage rates around 6.8% have slowed some buyers, but Indiana’s affordability remains a key draw compared to national averages.
- Typical monthly payment on a $280K loan ≈ $1,800
- Statewide affordability index remains above 80, one of the highest in the Midwest
- First-time buyer programs and rural housing incentives continue to support ownership
Economic and Policy Factors Driving the Market
- Job Growth: Manufacturing, healthcare, and logistics sectors expanding statewide.
- Population Gains: Migration from Illinois and Michigan supports steady housing demand.
- Development Trends: Suburban construction and downtown revitalizations boost mixed-use growth.
2025 Tips for Buyers, Landlords, and Investors
For buyers: Take advantage of moderate price growth and expanding inventory before rates rise again.
For landlords: Maintain competitive pricing and focus on tenant satisfaction for higher renewal rates.
For investors: Explore value-add multifamily properties or suburban SFRs for strong cash flow.
Conclusion – Indiana’s Market Remains Affordable and Strong
Indiana’s Fall 2025 housing market showcases resilience and balance. Home prices and rents are rising moderately, supported by job growth and steady migration. For investors, property owners, and residents, Indiana continues to offer strong fundamentals and long-term value heading into 2026.
Contact Intempus Property Management to learn how we can help you manage and grow your real estate investments across Indiana.
Explore Real Estate Trends Across 9 States
Our full Fall 2025 Real Estate Market Update – Regional Trends Newsletter includes in-depth analysis of market conditions in:
California, Florida, Ohio, Tennessee, Indiana, Nevada, South Carolina, Georgia, and Virginia.
📥 Download the PDF Newsletter Now to compare regional performance, track rental trends, and access expert insights.
Sources: Local REALTOR® associations and industry reports, Zillow Rental Data, Redfin Research, and state-specific market analyses
