INDIANAPOLIS — The price of rent spiked after the pandemic and has not truly come back down since. Another spike could be on the way if tariffs continue to impact the economy.
"With all of the uncertainty in the economy, renting is more flexible. If you lose a job, it's easier to get out of a lease than it is to sell a home," said Daryl Fairweather of Redfin. "That added demand will put a lot of pressure on rents and I think next year we'll start to see rent going up again."
According to Redfin's latest report, the average asking price for rent in central Indiana is now $1,406 a month, a 1.3% increase from this time last year. The national rent asking price slightly decreased in that time, but nearby cities such as Chicago, Cincinnati, and Louisville all experienced more dramatic price increases than Indianapolis.
The reason for the rise, according to Fairweather, is not enough supply for the demand.
"Prices are declining in parts of the country where there has been a lot of new construction," Fairweather said. "They are rising in places that have not had as much construction, but have still had strong demand."
Butler University economics professor William Rieber said the constant threat of tariffs could raise prices due to builders second-guessing new housing developments.
"The key word here is anxiety," Rieber said. "How do you make a long-term commitment to build a home, apartment complex, or condominium when you're not sure what the tariffs on imports will be like lumber, steel, or aluminum?"
Indianapolis rent remains a bargain compared to the rest of the country. Redfin reports the national average rent asking price is $1,610, $200 more expensive than Indianapolis.
-
Family remembers woman killed in domestic violence incident
Sapanna Harris-Williams was shot and killed on Indy's southwest side Saturday. Police arrested and charged her boyfriend with murder.
Two-way street conversions on Indy's East Side set to finish soon
A long-planned infrastructure improvement through the east side of Indianapolis is almost ready for cars.
James Whitcomb Riley School 43 awarded $10,000 grant to continue arts education
Arts education is a top priority at James Whitcomb Riley Elementary School. This focus on the arts is one reason why the John Lennon Educational Tour Bus made a stop at the school.
Speed cameras now enforced on I-465/I-69 construction zones
Drivers on I-465 near the Clear Path construction zone are now facing automated speed enforcement as part of Indiana’s “Safe Zones” program, which officially began full enforcement Monday.
