Fair housing report highlights growing rental burden in Indianapolis

A new report from the Fair Housing Center of Central Indiana details growing challenges for Indianapolis area renters in search of affordable housing. 

The report gathered major metrics from the last ten years, including average renters’ income compared to the cost of rental housing. 

The FHCCI determined that half of all renters in Marion County are cost burdened — spending 30% or more of their monthly income on rent and utilities. A quarter of renters spent more than half of their salary on these necessities, with figures increasing for seniors or those with disabilities. 

Amy Nelson, executive director of the group, explained that in other parts of the country, rent has been decreasing. 

“That is simply not happening in the Indianapolis metro area,” she said, “and that very well may be impacted because we have such a low vacancy rate.”

The average rent for a market-rate apartment across the metropolitan area has risen nearly 50% over the last ten years, from about $899 to $1,339 monthly.

The report also details a 15-year low rental vacancy rate of 3.9% across Marion County, below what’s considered “healthy.” Low rates mean renters seeking  housing may be unable to find it, especially very low income residents, forcing them to stay unhoused or live in overcrowded, even unsafe, units.  

According to the National Low Income Housing Coalition (NLIHC), the Indianapolis metro area has only 32 affordable and available rental units for every 100 households in the lowest income category of renters. 

“Although we have seen some new units coming onto the market,” Nelson said,“these are largely unaffordable for most of our renters.”

Across the state, renters continue to contend with rising utility costs and one-off fees, like ‘technology’ or ‘amenities’ required at move-in. 

Contact Reporting Intern Erika Kovach at ekovach@wfyi.org.