If your rent just went up—again—you’re probably wondering what’s going on. Indiana has long been known for its affordable housing, but in recent years, rental prices have been climbing at a much faster pace. It’s not just big cities feeling the squeeze—renters across the state are facing higher costs and fewer options.
So, what’s behind this surge? A mix of high demand, limited housing supply, and rising property costs is making Indiana’s rental market more competitive than ever. Whether you're looking for answers or planning your next move, understanding these factors can help you prepare.
Let’s get to know why rent prices are rising in Indiana—and what both renters and landlords can do about it.
More Renters, Fewer Homes
One of the biggest reasons for rising rent prices is the growing gap between rental demand and housing supply. Indiana’s population is increasing, especially in cities like Indianapolis, Fort Wayne, and Bloomington. More people moving in means more rental units are needed—but new housing construction isn't keeping up.
Several factors are limiting the housing supply:
- Slow new construction has made it difficult to meet the growing demand for housing. High interest rates, labor shortages, and rising material costs have delayed many projects, reducing the number of available housing units for renters.
- More long-term renters are staying put because house prices and mortgage rates have made homeownership too expensive. With fewer people buying homes, the rental market is becoming more crowded.
- Short-term rentals like Airbnb have reduced the number of long-term rental units, as many landlords prefer travelers who can pay higher nightly rates.
With fewer homes available, many renters struggle to find quality housing at a reasonable cost. This is where professional property management services like Complete Landlord Solutions (CLS) can help.
They ensure that rental properties are well-maintained, competitively priced, and accessible to renters seeking stable housing. Whether you're a tenant seeking a reliable rental or a landlord dealing with rising costs, partnering with a property management team can simplify the process.
Rising Costs for Landlords
It’s not just renters feeling the impact—landlords are also facing higher expenses, and many are passing these costs onto tenants.
As house prices rise, property taxes have increased, forcing landlords to adjust rent prices to keep up. At the same time, maintenance and repairs have become more expensive, with rising labor and material costs making it harder to maintain rental units.
Insurance rates have also gone up, especially in urban areas, adding another financial burden for landlords. With all these increasing expenses, rent increases have become more common as property owners try to offset their rising bills.
Out-of-State Investors are Raising Indiana’s Rent
Indiana’s rental market has caught the attention of out-of-state investors looking to profit from relatively lower property prices. Large investment firms are buying up rental units, often outbidding local buyers and then charging higher rents to maximize returns.
Unlike local landlords, these investors are more likely to increase rent aggressively, knowing demand remains strong. Instead of selling homes to families, they turn them into long-term rentals or vacation rentals, further limiting the housing supply.
Short-term rentals like Airbnb are also reducing the number of long-term homes available, particularly in tourist-friendly cities. This shift creates more competition among renters, pushing prices even higher.
No Rent Control in Indiana
Unlike places like San Francisco, Indiana has no rent control laws. This means landlords can raise rent without limits, and in high-demand areas, they have little reason to keep prices low.
Some renters have seen rent increases of 10-20% in just one lease renewal. Unlike cities with laws that regulate rental prices, Indiana allows the market to determine rent growth. Without legal protections, tenants have fewer options when faced with sudden rent hikes, forcing some to consider moving to more affordable housing areas.
Short-Term Rentals are Taking Over Homes
The popularity of short-term rentals has added even more pressure to Indiana’s rental market. Many landlords are choosing Airbnb and vacation rentals over long-term leases because they can charge higher nightly rates.
With fewer rental units available for local residents, competition is heating up, pushing rent prices even higher. The impact is especially sharp in tourist-friendly cities and downtown areas, where rent is skyrocketing faster than anywhere else in the state.
What Renters and Landlords Can Expect Moving Forward
With Indiana’s rental market becoming more competitive, professional property management services can benefit both renters and landlords.
For renters, a well-managed rental property means better maintenance, clear lease agreements, and a smoother renting experience. A property management company ensures that tenants' needs are met, helping them find and stay in quality rental units.
Working with a property management service can relieve landlords of the stress of handling rent increases, maintenance requests, and tenant screenings. By keeping rental properties well-maintained and efficiently run, landlords can attract better tenants and stay competitive in the market.
How to Manage Rising Rent Costs in Indiana
Indiana’s rental market is shifting fast, and both renters and landlords need to stay ahead of the changes. With rising demand, a limited housing supply, and no rent control laws, rental costs are expected to keep climbing.
For renters, this can mean tough decisions—whether to stretch budgets, downsize, or relocate. Families, young professionals, and retirees may struggle to find affordable options, making it more important than ever to explore solutions like rent negotiation, assistance programs, or expert guidance.
Landlords, on the other hand, face the challenge of balancing rising expenses while attracting and keeping good tenants. Managing properties, setting fair rental prices, and handling tenant needs takes time and expertise. That’s where property management services like Complete Landlord Solutions (CLS) come in.
Since 2014, CLS has helped property owners and renters navigate Indiana’s competitive market with ease. From tenant screening to maintenance and lease management, their team ensures smooth, hassle-free rental experiences.
Looking for a trusted property management partner or a quality rental in Indiana? Contact Complete Landlord Solutions today and take the stress out of renting.
More Resources:
- How to Keep Great Tenants in Your Investment Property
- Why Get Renter’s Insurance? 4 Reasons for Tenants/Owners in Terre Haute, IN
- Understanding Your Rental Lease Agreement | Terre Haute Property Management