Midwest

Strong job growth in the second half of 2016, robust tenant absorption of new apartment supply and falling vacancies throughout the Indianapolis metro area supported a markedly improved multifamily marketplace by the end of the year. This year, steady employment gains and rising home prices will continue to bolster apartment property performance metrowide. In the first half of 2016, hiring was sluggish due to a lack of available workers, but ramped up at midyear. By year’s end, area employers increased employee headcounts by 25,300, a 2.5 percent increase overall. Although employment gains were widespread, the education and health services sector led job creation followed by construction. With the opening of Cummins Inc.’s new distribution headquarters and tech sector growth most notably Salesforce’s significant expansion in the area hiring this year is expected to remain stable. The forecast calls for employers to add 20,000 new workers to payrolls this year, which will further elevate demand for multifamily rentals. Construction ramps up Developers delivered 2,500 rental units to the marketplace last year, the second largest annual supply increase in nine years, but tenants readily absorbed the new supply. Nearly half of the submarkets in the metro area received new supply in 2016, …