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Is Indianapolis a 2024 real estate hot spot? Zillow says so

(Photo by Tim Boyle/Getty Images)

INDIANAPOLIS (WISH) — Real estate company Zillow predicts Indianapolis will be one of the hottest housing markets in 2024, according to its annual report.

Local real estate agent and owner of White Stag Realty in Indianapolis Josh Dilmaghani isn’t surprised.

“First, our affordability is mind-boggling to either investors looking to put their money into real estate or for out-of-state buyers relocating for personal or professional reasons. For example, we have an out-of-state investor who has purchased four properties with our firm over the last three years,” he said. “Every home he has purchased is larger than his personal residence, and yet the combined sale price of the four properties is less than what he paid for his primary residence in California. And with the strong rental market, we’ve seen for several consecutive years, now the investor has had compelling cash flow that I don’t know would have been attained if the same funds were invested in real estate in his home state.”

In addition to Indy, Buffalo, New York; Cincinnati; Columbus, Ohio; Providence, Rhode Island; Atlanta; Charlotte, North Carolina; Cleveland; Orlando, Florida; and Tampa, Florida, top this year’s ranking. Indianapolis jumped 13 spots from 2023 to 2024.

According to Zillow, the projected typical home value in Indianapolis is $268,125, compared to the U.S. average of $347,415.

“As a market, we have a ton of room for growth still. This is a stark contrast to some markets (New York City, Chicago, several markets in California, etc.), where in order to add something new, you generally have to do a drastic renovation of an existing structure or tear something down. But drive through the suburbs surrounding Indianapolis, and you’ll find an abundance of developable land, new homes being constructed, and commercial developments just waiting to happen,” Dilmaghani added.

Home prices and homeownership rates are expected to decline in New Orleans, San Antonio, Denver, Houston, and Minneapolis. These metro areas are expected to be the coolest in 2024, per the report.

“We’re not dependent upon one industry for Indianapolis’s success as a city. We have manufacturing, warehousing, hospitality (our nationally central location makes us PRIME for hosting large conventions and events), biopharmaceutical, IT, construction, etc. This diversification in the makeup of our economy builds resilience to changing economic factors that some markets in other parts of the country just don’t have. Much like someone investing in real estate will serve themselves well to diversify their investments, Indianapolis has done itself well by diversifying its job market,” Dilmaghani said.