Top Locations5 Reasons to Invest in the Indianapolis Real Estate Market 2019 by Heba Baker February 3, 2019February 4, 2019 by Heba Baker February 3, 2019February 4, 2019Indianapolis is one of the hottest cities in the Midwest real estate market, and we’re going to tell you why. Considered to be a cash flow market with investment property gems, the Indianapolis real estate market is where you want to invest in this year.Indianapolis Real Estate Market Outlook – Reasons to InvestAny experienced real estate investor will tell you over and over again the importance of location in this business. The success that comes with buying a rental property depends on multiple factors- which ultimately all lead back to the location.The market you invest in will determine the rental demand, rental expenses, rental income and more; all need to be considered for establishing a high return on investment. So if you’re planning on buying an income property in 2019, conduct your research and find out where to invest in real estate for high returns first.Related: Why It’s a Good Time for Indianapolis Real Estate InvestmentsWe’ll help you out and point you in the right direction for maximum profit– the Indianapolis real estate market. Let’s take a look at why that is.#1. It’s a Buyer’s MarketBefore investing in any market, you need to know what you’re up against. Determining whether it’s a seller’s market or a buyer’s market will give you an idea of how much leverage you have in striking a deal.The price of property on the market and the volume of property on the market (inventory) will help investors determine how hot any market is. According to Zillow, the Indianapolis housing market 2019 has cooled down to a buyer’s market. This is always a strong motivator for real estate investors because it means they have the upper hand in negotiations.#2. Big Renter PoolThe absolute best place to invest in real estate and rent out properties is a market with high rental demand. Good news for anyone owning rental properties in the Indianapolis real estate market- nearly half of the population rents.Indianapolis is the 15th largest city in the US and is only going to continue to grow. Factor in the Indianapolis population size and you’re looking at a pool of approximately 395,000 potential renters. High rental demand has helped push rental rates up making an Indianapolis real estate investment a profitable opportunity.#3. High Occupancy RatesThe Indianapolis real estate market actually has the fourth highest occupancy rate out of the top twenty single-family rental markets. Occupancy rates are also an important factor that can make or break your profit. If your rental properties are vacant, you’re not going to generate any rental income, therefore losing your cash flow. Indianapolis investment properties have a 95.6 percent occupancy rate (for single-family homes).Related: How to Calculate the Occupancy Rate for Rental Properties#4. Growth in Home ValueYou want to invest your money in markets that have value. Not just today, but in the long-run. The Indianapolis real estate market is full of investment opportunities like that.The median home value in Indianapolis is $139,200. This figure has gone up 14.4 percent over the past year and is predicted to increase another 2.5 percent within the next year.#5. Airbnb Is LegalWith the overwhelming amount of Airbnb rentals popping up throughout the country, many cities have made efforts to ban short term rental listings on platforms such as Airbnb and VRBO. So is Airbnb legal in Indianapolis? The state of Indiana does not fall in line with the Airbnb critics.A bill to protect private property rights and boost Indiana’s tourism economy was passed mid-2018. Indianapolis has always been known to be a landlord-friendly city, but does that welcoming atmosphere also apply to Airbnb hosts?If signed into law by Governor Holcomb, this bill would be great for Airbnb investors. The private property rights of short term rental owners and hosts would be protected under Indiana law. Municipalities would also be prohibited from any outright bans of short-term rentals or home sharing.Related: Is Airbnb a Good Investment Considering All of the Regulations?Now all of this is great, but it’s time we get down to some serious numbers regarding Indianapolis real estate investing.Mashvisor’s Data: The Indianapolis Real Estate Market 2019Using data from Mashvisor’s investment property calculator, we can now focus on the actual performance of rental properties in the Indianapolis real estate market. Here are the important numbers:Median Property Price: $204,853Price per Square Foot: $97Price to Rent Ratio: 15Average Days on Market: 89Monthly Traditional Rental Income: $1,135Traditional Cash on Cash Return: 2%Monthly Airbnb Rental Income: $2,007Airbnb Cash on Cash Return: 4%Airbnb Occupancy Rate: 50%So the city-wide data for the Indianapolis real estate market is looking pretty strong. There’s a sustainable income for both rental strategies and good cash on cash return rates. If you were expecting something a little bit higher, don’t shy away just yet. Keep in mind these are city-level numbers and that you can definitely find investment properties in higher performing neighborhoods. We have just that coming up.Best Neighborhoods in Indianapolis for Real Estate InvestingIn addition to the data above, Mashvisor’s calculator also has the same figures and stats for neighborhoods in the Indianapolis real estate market. Certain areas perform better with Airbnb rentals (short term) and others with traditional rentals (long term); so we’re going to list the top-performing neighborhoods for each strategy.Top Neighborhoods for Airbnb Indianapolis RentalsSouthdaleMedian Property Price: $181,673Price per Square Foot: $97Days on Market: 64Monthly Airbnb Rental Income: $3,675Airbnb Cash on Cash Return: 12%Airbnb Occupancy Rate: 64%Near SoutheastMedian Property Price: $101,150Price per Square Foot: $68Days on Market: 97Monthly Airbnb Rental Income: $2,168Airbnb Cash on Cash Return: 12%Airbnb Occupancy Rate: 60%FairgroundsMedian Property Price: $165,495Price per Square Foot: $95Days on Market: 81Monthly Airbnb Rental Income: $2,287Airbnb Cash on Cash Return: 7%Airbnb Occupancy Rate: 70%Top Neighborhoods for Traditional RentalsMapleton-Fall CreekMedian Property Price: $190,143Price per Square Foot: $76Price to Rent Ratio: 11Days on Market: 110Monthly Traditional Rental Income: $1,430Traditional Cash on Cash Return: 4%University HeightsMedian Property Price: $120,994Price per Square Foot: $80Price to Rent Ratio: 11Days on Market: 100Monthly Traditional Rental Income: $912Traditional Cash on Cash Return: 3%If you’re liking these numbers, sign up for a free account with Mashvisor to use our Property Finder Tool. You can fine-tune the search results based on your criteria to find the perfect investment property in the Indianapolis real estate market. To learn about your options for signing up for our services, click here.Related: Rental Property Finder: A Revolutionary Tool for Investing in Real Estate Start Your Investment Property Search! START FREE TRIAL AirbnbAirbnb RegulationsIndianapolis INTraditional 0FacebookTwitterGoogle +PinterestLinkedin Heba BakerHeba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post Learn How to Calculate Cap Rate for a Rental Property Next Post Real Estate Investing for Beginners: The Rate of Return Formula Related Posts The Best Places to Buy a Vacation Home in Florida in 2018 What’s Up With Seattle Real Estate Investing Houston Housing Market 2019: 5 Current Trends You Need to Know Where to Buy California Multifamily Properties for Sale in 2019 Where to Look for the Best Real Estate Investments for 2018 Top 5 Areas for Dallas Investment Properties What’s the Deal With Miami Beach Real Estate Investing? How to Identify the Best Places to Invest in Real Estate? San Diego Housing Market 2019: 6 Current Trends You Need to Know Why Texas Real Estate Has Always Been Sexy For Investors Sacramento Housing Market 2019: Why and Where to Invest Columbus Real Estate 2018: A Hidden Investment Opportunity?