The real estate market in Indianapolis and central Indiana remains “unusually” active, with sales prices increasing by double-digits due to growing buyer demand. According to a recent report from Inside Indiana Business, available inventory to purchase was down by more than 19% in December 2021 compared to the same period last year.
A shortage of homes to buy is also driving rent prices up. Median monthly rents for 3-bedroom homes in metro Indianapolis increased by 12%. In fact, in many neighborhoods and suburban areas more than 50% of the residents rent their homes.
Here are 15 neighborhoods and suburbs in Indianapolis to consider purchasing an investment property in, including 3 where more than 70% of the households are occupied by renters.
Key takeaways
- Indianapolis is home to nearly 900,000 residents in the city and about 2.1 million residents in the metropolitan area.
- Population growth of Indianapolis was more than 8% over the past 10 years, while some suburban counties saw their populations grow by more than 20%.
- Some of the neighborhoods and suburban towns in and around Indianapolis where more residents rent than own include Downtown Indianapolis, Keystone at the Crossing, and Castleton.
>>Explore Roofstock's Indianapolis investment properties.
Why invest in Indianapolis?
Indianapolis is ranked as one of the top housing markets positioned for growth in 2022, according to a report from Realtor.com. Home sales in the metro area are forecast to increase by nearly 15% while selling prices are predicted to grow by 5.5%.
Growing is something Indianapolis has been doing exceptionally well. The population of the city has grown by 8% over the past 10 years, while suburban counties such as Boone and Hendricks have seen population growth of more than 20%.
As more people and businesses come to the metro area, the demand for housing and rental property in Indianapolis is growing as well. Median rents for 3-bedroom homes have increased by 12% year-over-year, according to Zumper as of February 2022. Zillow reports that the typical value of middle price tier homes grew by 19.8% over the past year (through Jan 2022).
15 great areas in Indianapolis for investment properties
There are over 100 neighborhoods in Indianapolis to look for investment property in, with median listing prices ranging from $94,900 to $399,000. In January 2022, the median listing price of a home in metropolitan Indianapolis was $119,000, an increase of 18.4% year-over-year, according to Realtor.com.
Affordable home prices in Indianapolis are attracting attention from home buyers and investors. Redfin notes that in January of this year 1,002 homes were sold vs. 982 the same month last year, with many homes receiving multiple offers and going under contract in around 7 days.
Here are 15 neighborhoods in Indianapolis to consider buying investment property in. Neighborhood-level data comes from Redfin, Realtor.com, and Niche.com.
Near Eastside
The Near Eastside neighborhood in Indianapolis is located just east of downtown. Even though East Side is close to the city center, the neighborhood has a sparse suburban feel, with lots of bars and restaurants, and is popular with renters:
- Population: 30,176
- Median sale price: $150,000
- Change in sales price (year over year): 50.0%
- Days on market: 23
- Median rent: $856
- Renter-occupied households: 58%
- Median household income: $32,424
- ZIP code: 46201
Near Northside
Near Northside is another neighborhood in Indianapolis with a large percentage of renters. Located a short walk north of downtown, Near Northside has an urban-suburban feel with a lot of bars, restaurants, and coffee shops:
- Population: 10,610
- Median sale price: $393,750
- Change in sales price (year over year): 8.6%
- Days on market: 38
- Median rent: $1,012
- Renter-occupied households: 59%
- Median household income: $59,334
- ZIP code: 46202
Broad Ripple
Broad Ripple is ranked as the best neighborhood to live in Indianapolis by Niche.com. Located about 20 minutes north of the city, Broad Ripple is bordered by the White River on the north and west and has a dense suburban feel:
- Population: 8,100
- Median sale price: $297,500
- Change in sales price (year over year): 10.6%
- Days on market: 12
- Median rent: $1,318
- Renter-occupied households: 38%
- Median household income: $87,505
- ZIP code: 46220
South Franklin
South Franklin is located south of the city along I-65, near Franciscan Health Indianapolis and Indy South Greenwood Airport. South Franklin has a sparse suburban feel, and is ranked as one of the best neighborhoods to buy a house in Indianapolis by Niche.com:
- Population: 20,343
- Median sale price: $279,250
- Change in sales price (year over year): 8.0%
- Days on market: 3
- Median rent: $1,195
- Renter-occupied households: 23%
- Median household income: $91,847
- ZIP codes: 46112, 46074, 46168, 46037
Far East Side
Over half of the households in the Far East Side neighborhood are occupied by renters. Located northeast of the city near the intersection of I-70 and I-465, Far East Side also has a dense suburban feel with a lot of parks:
- Population: 53,593
- Median sale price: $153,000
- Change in sales price (year over year): 22.4%
- Days on market: 6
- Median rent: $890
- Renter-occupied households: 58%
- Median household income: $38,894
- ZIP code: 46201
Downtown
Downtown Indianapolis is bordered by I-70 on the east and the White River on the west, and is an area in Indianapolis where most residents rent their homes. Smaller districts in the Downtown neighborhood include Mile Square, Fletcher Place, and the Wholesale District:
- Population: 22,213
- Median sale price: $339,500
- Change in sales price (year over year): 4.5%
- Days on market: 32
- Median rent: $1,180
- Renter-occupied households: 78%
- Median household income: $54,048
- ZIP codes: 46202, 46203, 46204, 46225
Canterbury-Chatard
Located between the Broad Ripple and Meridian-Kessler neighborhoods northeast of the city, has a dense suburban feel with a lot of restaurants, coffee shops, and parks:
- Population: 4,224
- Median sale price: $248,250
- Change in sales price (year over year): 1.3%
- Days on market: 7
- Median rent: $1,105
- Renter-occupied households: 36%
- Median household income: $65,617
- ZIP codes: 46205, 46220
Castleton
Castleton is located at the intersection of I-465 and I-69, about a 30 minute drive northeast of Indianapolis. The small town has an urban-suburban feel, and is a suburb of Indianapolis where most residents rent their homes:
- Population: 10,998
- Median sale price: $195,000
- Change in sales price (year over year): -1.0%
- Days on market: 5
- Median rent: $1,057
- Renter-occupied households: 76%
- Median household income: $52,754
- ZIP codes: 46250, 46256
Keystone at the Crossing
Keystone at the Crossing is located just west of Castleton along I-465, and is another suburb of Indianapolis where most residents rent their homes. The neighborhood has a urban-suburban feel, with a lot of restaurants and parks:
- Population: 5,218
- Median sale price: $325,000
- Change in sales price (year over year): -0.31%
- Days on market: 54
- Median rent: $1,129
- Renter-occupied households: 70%
- Median household income: $69,178
- ZIP code: 46240
Ravenswood
Ravenswood has one of the lowest median home sales prices in Indianapolis and is ranked by Niche.com as one of the best neighborhoods to live in Indianapolis. Located north of the city near Broad Ripple and Castleton, Ravenswood has a spare urban feel with a lot of restaurants, coffee shops, and parks:
- Population: 2,323
- Median sale price: $186,000
- Change in sales price (year over year): 20.2%
- Days on market: 14
- Median rent: $1,182
- Renter-occupied households: 38%
- Median household income: $61,330
- ZIP code: 46240
Fairgrounds
Located south of Broad Ripple about 15 minutes north of the city, Fairgrounds has a dense suburban feel and a large percentage of renters. The neighborhood has a lot of bars, restaurants, and parks, and is home to the Indiana State Fairgrounds:
- Population: 4,482
- Median sale price: $190,950
- Change in sales price (year over year): 11.0%
- Days on market: 15
- Median rent: $839
- Renter-occupied households: 60%
- Median household income: $44,285
- ZIP code: 46205
Meridian Kessler
Meridian Kessler is located next to the Fairgrounds neighborhood, a short drive from Downtown Indianapolis. The neighborhood has a dense suburban feel, with a lot of restaurants, coffee shops, and parks:
- Population: 17,374
- Median sale price: $331,000
- Change in sales price (year over year): -2.6%
- Days on market: 9
- Median rent: $1,224
- Renter-occupied households: 25%
- Median household income: $104,601
- ZIP code: 46205
Eagle Creek
The Eagle Creek neighborhood is 20 minutes northwest of Indianapolis along I-65. Eagle Creek has a dense suburban feel, is home to the Eagle Creek Park and Reservoir, and is a suburb of Indianapolis where nearly half of the residents rent their homes:
- Population: 21,281
- Median sale price: $215,000
- Change in sales price (year over year): 16.2%
- Days on market: 5
- Median rent: $999
- Renter-occupied households: 49%
- Median household income: $70,016
- ZIP codes: 46214, 46253, 46254
Wynnedale-Spring Hill
Wynnedale-Spring Hill is a few minutes north of downtown near the Marian University Indianapolis campus. The neighborhood has a dense suburban feel with a lot of parks, and includes the districts of High Knoll Estates and Crooked Creek Civic League:
- Population: 6,719
- Median sale price: $220,400
- Change in sales price (year over year): -7.4%
- Days on market: 6
- Median rent: $959
- Renter-occupied households: 28%
- Median household income: $72,629
- ZIP code: 46228
Millersville
Millersville is ranked as one of the best neighborhoods to live in Indianapolis by Niche.com, and is also an area where nearly half of the residents rent their homes. The neighborhood has a dense suburban feel and is located a few minutes northeast of the city along Binford Boulevard:
- Population: 10,794
- Median sale price: $240,000
- Change in sales price (year over year): 3.2%
- Days on market: 6
- Median rent: $1,039
- Renter-occupied households: 49%
- Median household income: $56,390
- ZIP code: 46220
>>Explore Roofstock's Indianapolis investment properties.
