by Dan Rafter
The multi-family market is soaring in Indianapolis. But it’s also strong in Indiana markets such as Anderson, West LaFayette, Muncie, Evansville and Fort Wayne.
It’s actually difficult to find a major market in Indiana in which the multi-family market is not strong.
That’s the positive news from the Multi-family Market Overview: The State of Indiana report from CBRE’s Central Midwest Multifamily Group.
The report takes a close look at the performance of the multi-family sector throughout Indiana in 2014, and according to the numbers, the state’s overall multi-family occupancy rate stood at a strong 94.1 percent at the end of last year. At the same time, apartment rents increased in nearly all of the state’s markets.
“The market votes with its dollars,” said Steve LaMotte Jr., senior vice president at CBE’s Indianapolis office, in a written statement. “With $569 million in multi-family properties trading in 2014, we’re finding a growing list of sources interested in deploying capital in Indiana. We expect this interest to continue to grow in 2015.”
According to CBRE, investment sales volume in this sector increased 39 percent from 2013 to 2014, with more than $649 million trading in more than 55 transactions in the markets that the company studied.
CBRE says that the overall average multi-family asking rental rate for Indiana stood at $730 at the end of 2014, a jump of 2 percent from 2013. Bloomington enjoyed the biggest year-over-year increase at 4.8 percent, while Kokomo and Muncie tied for the second largest increase, 3.9 percent.