How investors are buying homes in Indiana and driving up prices

1 in 4 home sales in central Indiana are to institutional, corporate investors. Indianapolis is the #1 city for out of state investment in rental properties. Here’s some more statistics:

• At the start of 2021, 19% of Indianapolis single-family homes were owned by entities that could be classified as institutional investors. This investor ownership rate was the highest out of 63 markets being tracked (we’re #1).

• In 2012, less than 15% of residential property purchases were by investors, by end 2021, 26% of residential property purchases were by investors.

• It is still growing – investor purchases of single-family homes is on track to account for more than 30% of purchases in 2022.

So, why do I care, I don’t rent… this doesn’t affect me. Yes, it does. As this recent story from WTHR shows, this is happening in suburban neighborhoods as well as in the city. Buyer’s are outbid by institutional investors who are overpaying for properties, primarily so they can rent them out. This falsely inflates property values, increases the tax base in neighborhoods, and destabilizes neighborhoods with transitional housing.

This is everyone’s problem. Our legislators will do nothing if we don’t speak out. Contact your state legislators (find them here) and tell them this isn’t ok. Indiana is not a corporate punching bag.