Urban Neighborhood Watch-List
Three most “up-and-coming” parts of urban Indy as of 2024
Downtown Indianapolis has over $9B in investment in the pipeline. Nine BILLION dollars into Indy real estate.
The skyline is literally changing.
With that being said… What urban neighborhoods should you be watching out for?
In this post we are going to delve into three unique neighborhoods that are each uniquely positioned to continue to take off in the next 5 years.
Top Three Neighborhoods in Indy to Watch for Investment Potential:
#1. Riverside, Indianapolis, IN
Riverside is located on the eastern banks of the White River on the near-north-west-side. It is a very diverse neighborhood, and is known for the large Riverside regional park, as well as large esplanades. I would describe it as a C to C+ neighborhood in development.
- Population: 8,853
- Median Household Income: $42,058
- 5 Year Home Appreciation: +257%
- Median Home Price: $170,000
- If you bought a home here 5 years ago: $100,000 → $257,000
What makes Riverside unique?
Riverside Park along the White River is gorgeous! Yes, it has had better days, but I truly feel it is making a comeback. There is a golf course, amphitheater, and running path along the river. Riverside has a rich history and naturally one of the best locations in the city.
Why I like Riverside:
The median priced home here is $170,000. It’s still a very affordable neighborhood with a fairly low entry-price. The new 16-Tech complex is on the south edge of the neighborhood, bringing in higher paying jobs and a new vibrant tech scene. They are building brand new homes & duplexes here with price points in the upper $300s and $400s, signaling a shift in this area. Another benefit is its ultra close proximity to downtown (~5 minute drive). Plus, Guggman Haus Brewing is the GOAT of Indy breweries. 😉
1861 Montcalm – Sold $375,000 in June 2024
#2. Butler-Tarkington, Indianapolis, IN
Butler-Tarkington is located just north of 38th St. between the White River & Meridian Street — think of it like a “midtown” area. Butler-Tarkington is home to Butler University and has the unique features of being “up-and-coming” while also being extremely established with even some mansions in this vicinity.
- Population: 9,474
- Median Income: $98,043
- 5 Year Home Appreciation: 40.8%
- Median Home Price: $394,000
- If you bought a home here 5 years ago: $200,000 → $281,600
What makes Butler-Tarkington unique?
BT is home to the #1 ranked Regional University according to US News. Butler is a world-class university, making huge investment strides in it’s own right. Student housing does make up a decent amount of the housing in the western side of the neighborhood, but it’s also known for its stately, elegant homes to the north-side. All in all, it provides a ton of real estate diversity, a few decent commercial store fronts with immense potential, and a lot of wealth in the nearby vicinity.
Why I like BT?
In short, options. I own a short-term rental on the 3900 block of Rookwood. I get a good volume of traffic from Butler happenings, Newfields weddings, and people traveling for family reasons. I think the medium-term nursing housing route is a good strategy in this neighborhood as it has easy access to the major hospitals via I-65. Immense potential for student housing near the campus, although the real estate is getting more pricey. The area most ripe for investment is the blocks between 38th Street and 42nd Street, which has the cheapest, most affordable housing. I do not think these homes will always be this cheap and they are appreciating FAST!
Rookwood House Airbnb I got started up in 2024
#3. Twin-Aire, Indianapolis, IN
Twin-Aire is less of a traditional neighborhood and more of an “area”. TA is making strides to create more of a neighborhood identity. Historically, the area has been lower-income with cheaper housing, but things are in flux here…
- Population: 2,300
- Median Income: $31,000
- 5 Year Home Appreciation: 124%
- Median Home Price: $150,000
- If you bought a home here 5 years ago: $100,000 → $224,000
Twin Aire Plaza at the intersection of Southeastern Ave & Rural with major redevelopment plans in the pipeline
New Community Justice Center, recently built in Twin Aire, bringing in hundreds of jobs
What makes Twin-Aire Unique?
In 2022, the new community justice center was opened in Twin Aire, which sits atop an old out-of-use-industrial plant location. This is symbolic for the leap this community is undergoing. Twin-Aire was actually losing population up until recently, when new development came in, creating more jobs and economic opportunity. Twin-Aire butts up to the Fountain Square arts & commercial district, adding to the spillover of development and real estate activity.
Why I like Twin-Aire?
Let’s face it, a median price point of $150,000 ain’t too bad. You can snag a duplex here for about $200,000 or single family for $150,000 and certainly see the value drive up. I see Twin-Aire as the “cheaper” version of Fountain Square. It’s median price is about $150k less, yet it is just as close to many well-paying jobs and city amenities. Home flippers are running out of homes in the Fountain Square neighborhood to flip and turning their sites to this area, making it a prime area for re-development. Additionally, the area is targeted by local government for a large-scale redevelopment. The entire Twin-Aire plaza which hosts a Kroger and Ace Hardware is the site of a massive redevelopment.
Just one of the many redevelopment plans proposed for Twin-Aire
There you have it.
These are my top three urban neighborhoods to watch heading into 2025.
It truly feels like urban Indy is heading into a renaissance and resurgence period of a large magnitude, and I couldn’t be more excited for as a long-time resident.
Let me know your thoughts. What areas did I miss? Where are you seeing exciting developments?
Up Next — I plan to do a deep dive into suburban / small towns around Indianapolis to check-in on what’s happening to the real estate markets there.
Cheers,
Tyler
