I’m going to get to the neighborhood ratings, but I need to set the stage a bit.
Position A: In the last 3 years, Indianapolis has been the largest contributor to economic growth in the midwest (+8.4% in GDP, which represents an increase in $12.1B).
Position B: Indianapolis homes have appreciated 48.2% in the last three years. Beating out Michigan, Wisconsin, Ohio, Kentucky, and Illinois. In fact, every neighboring state around Indianapolis is not performing nearly as well economically as Indiana.
What I think is interesting is how the Indianapolis GDP is growing at a rate noticeably faster than population growth. According to macrotrends.com:
“The current metro area population of Indianapolis in 2024 is 1,903,000, a 1.17% increase from 2023. The metro area population of Indianapolis in 2023 was 1,881,000, a 1.24% increase from 2022. The metro area population of Indianapolis in 2022 was 1,858,000, a 1.36% increase from 2021.”
What this would indicate is that the Indianapolis metro area has only had modest population growth; while the economy is just taking off in this time. This trend will lead to:
- Less unemployment
- Higher paying jobs
- Higher quality of life for residents
- Future population increases
- Continued need for housing; Steady housing appreciation; Steady rent growth
With that being said, where are the best neighborhoods to live in or invest in Indianapolis?
For the sake of this discussion, I’m going to not be including the suburbs. I will do a future article discussing trends we are seeing in the suburbs and periphery of Indianapolis.
I’m going to rank these neighborhoods by a) home appreciation the last 3 years, b) number of large-scale investment / infrastructure projects nearby, and c) overall commercial development I’m seeing on the ground (one could call this the trendiness level). I also only have included neighborhoods that saw continued appreciation even in 2023. This indicates these neighborhoods have robust resiliency to remain hot, even in economic turbulence.
#1. Meridian-Kessler — “Quality of life”
Meridian-Kessler is north-central to downtown, in close proximity to the “Meridian mansions” lining up & down Indianapolis’s main thoroughfare. Meridian-Kessler is known for historic, custom built homes near the turn of the century. It is extremely walkable and known for many local pubs, eateries, and coffee shops. MK is going to be an appreciation play, versus a cash flow play (unless you get into furnished stays). With that being said, the multifamily here is a great investment with rents going way up in the last few years.
Median home price: $442,500
Year-over-year appreciation: 17.2%
Median Days on Market (last year): 10 days
#2. Irvington Historic District — “Historic haunts”
Irvington is due east of downtown, 5 miles from the circle. Irvington is known for historic Victorian style homes, and it’s famous park like atmosphere with winding roots and quintessential tree-lined streets. Irvington is also infamous for it’s annual Halloween festival & haunted ghost tours. Irvington real estate has become hard to come by in recent years as more people seem to want to hold on to it. If you can get your hands on a single family rental, short term rental, or 2-4 unit multifamily, it will be a fantastic appreciation play with great rental demand. It is said here that when rentals hit the market, they are snatched up within hours. I’ve seen this myself.
Median home price: $235,000
Year-over-year appreciation: 27%
Median Days on Market (last year): 11 days
#3. Riverside — “Along the White River”
Riverside is slightly northwest of downtown, just west of the large hospital complexes near 10th / Indiana Ave. Riverside is a predominantly black community, located right on the banks of the White River. It is known for its large park, Riverside Park, which once boasted a massive amusement park. Now it includes an amphitheater, golf course, and running trail. Riverside mostly includes smaller single-family homes, with a limited amount of 2-4 unit multifamily. Riverside is a fantastic long-term rental play in the line-of-development due to it’s lower entry point prices.
Median home price: $138,950
Year-over-year appreciation: 15.8%
Median Days on Market (last year): 13 days
#4. Garfield Park — “Southside Oasis”
Garfield Park is located about 1 mile due south of Downtown Indianapolis. Garfield Park is named after the large urban park perched within as called “Garfield Park.” At one time this was one of the most eminent urban parks in the nation, featuring a famous conservatory. The conservatory remains, however, the park is beginning to emerge again as a popular local attraction & music venue. Garfield Park is known for quiet residential streets — think picket fences & quaint brick tudors. The commercial zone along Shelby Street is beginning to pop off with new trendy coffee shops (Helm Coffee) and other developments. It is a fantastic neighborhood to flip your next home or hold a rental.
Median home price: $191,000
Year-over-year appreciation: 9.1%
Median Days on Market (last year): 11 days
#5. Eagledale — “An international marketplace”
Alright this choice might raise some eyebrows, but the facts speak for themselves. The Eagledale neighborhood saw 14.3% year-over-year appreciation, making it one of the strongest performing neighborhoods in the city, even in a slower year (2023). Eagledale is positioned directly on top of Indianapolis’s famous “International Marketplace” along West 38th St. Here you’ll find hundreds of authentic ethnic spots from spicy taquerias to Arabic bazaars. The neighborhood is the perfect entry point into ownership for many of these first-and-second generation Americans. Additionally, because of it’s unique international flare, it is a popular rental destination. Lafayette Square Mall is seeing a massive redevelopment to the tune of $1 billion by Sojos Capital. I see this residential area remaining steady and strong with a lower entry point.
Median home price: $160,000
Year-over-year appreciation: 14.3%
Median Days on Market (last year): 19 days
There you have it!
My top 5 neighborhoods to live in or invest in, in Indianapolis in 2024.
Let’s be honest though, going alone can be daunting. Especially early on. Street-by-street, these neighborhood can be another thing… Each property has a different story and having a second set of eyes to help you analyze is critical.
If you want a local expert agent to help you — one that understands investing and is an investor themselves — reach out to our team, Roots Realty Co.
