Investors own half of rental homes in five Central Indiana counties, alarming housing advocates

A new report highlights that investment companies own nearly half of all single-family rental homes in five Central Indiana counties, with over 40,000 properties leased by corporate investors in Marion, Hamilton, Hancock, Hendricks, and Johnson counties. Out-of-state investors, drawn by affordable real estate, are targeting lower-priced homes, reducing options for first-time buyers and driving up rental costs. Median rent for single-family homes in the area is about $1,800 per month, while home prices exceed $300,000. Investors dominate the market for homes under $250,000, accounting for nearly a third of purchases.

The report identifies seven “mega-investors,” including Cerberus/FirstKey Homes, Progress Residential, and American Homes 4 Rent, which collectively own over a third of the area’s rental homes. Critics argue these firms prioritize profits over community needs, often neglecting maintenance and evicting tenants at high rates. Investors tend to purchase homes in lower-income neighborhoods, further restricting affordable housing options.

In Marion County, investors own 48% of single-family rental homes, with similar figures in surrounding counties. Many investors pay cash, outcompeting buyers relying on traditional mortgages. While some property managers advocate for quality maintenance, others are criticized for providing poor service, exacerbating housing challenges for renters.