The Indy rental experience and our Breakwater: “Why the discrepancy between high demand for housing in the city but low growth in occupancy rates?”

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In which you put yourself into Flaherty and Collins’ shoes, up there in exploding Indianapolis, on that day when the fax first arrived from David Duggins, the one expressing keen interest in top-dollar pads for millennials and oh, by the way, there’s a few million of TIF lube and a line or three of sewer tap-in waivers waiting — then a colleague says “hey, what’s that?”

“Dunno, some rube in Hicksville by Kentucky somewhere. Where are you headed?”

“The bathroom; those tacos are lighting me up. I’ve been breaking wind all morning.”

(Breaking wind … hmm)

“Hey, wait — ever heard of Nawbany?”

Read the whole piece.

From our perspective Down Here, only an excerpt is necessary to make the point, followed by Nuvo’s first example of high-priced vacancy — featuring a familiar name.

The rent is too damn high! How Indy’s rental boom leaves a lot of people at the curb, by Annika Larson (NUVO)

 … Why the discrepancy between high demand for housing in the city but low growth in occupancy rates?

Maybe it’s the lack of understanding what most millennials and the working middle class need. Or perhaps it’s the price-gouging that luxury apartment complexes impose on their tenants (extra fees for parking, pool access, gym access, pay-by-load laundry rooms, glamorous lobbies, full balconies, a bigger bathroom, etc.). After all, these apartments are supposedly aimed at the top 1 percent of millennials that are making around $90,000 a year. The reality of Indianapolis demographics is that the average household income is $63,865 at the median age of 34 years old. Under the age of 25, the median income rests at $28,553. That’s not to say there aren’t people who earn the top dollars here in Indy, but they just don’t exist in high enough numbers to fill up all of the amenity-rich apartments that are currently built — and have yet to be built — in 2016.

Instead, most people — specifically the younger demographic — currently living in Indianapolis (or looking at Indianapolis as a prospective future home) look toward the neighborhoods directly outside of the city, such as the Old Northside, Fountain Square, and Woodruff Place. The luxury apartment boom actually makes certain parts of the city unattainable for most people, specifically the Wholesale District and Monument Circle. Development of these living spaces is supposed to cater to residents who wish to make direct downtown living a reality, but high rent turns people away. So, direct downtown neighborhoods like the Wholesale District and Mass Ave aren’t seeing the vast influx of new residents and high rates of growth that was projected — instead, neighborhoods directly outside of the city are seeing growth because it’s the only affordable way to attain the vibe of downtown living …

Photo credit: Annika Larson, NUVO

Axis Apartments, Flaherty and Collins

• 336 units total
• 303 units occupied
• 33 units vacant
• Studios start at $1,245/month

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