Report: Downtown apartment market booming, with more units on the way
Downtown living is popping up nearly everywhere you look, and much more is coming.
By 2020, a surge of residential construction, mostly high-rent apartment buildings, will result in as many as 30,000 residential units in the area, according to projections by Downtown Indy, a public-private partnership that promotes activities and living in the heart of the city.
That compares to about 18,300 in 2010, the last time a count was done.
Much of the new housing is what Downtown Indy calls "amenity-rich apartments" — upscale buildings loaded with gyms, ritzy lobbies and fancy views of Monument Circle, the Downtown Canal, the White River or other surroundings.
"The public is willing to pay higher rates due to increased demand and unique experiences and amenities offered Downtown," the group said in a statement on Wednesday.
And it's not all spread out. Rather it is occurring in something that urban planners covet — density, or a significant number of people living and working close together. That's what gives a Downtown vitality, the group said.
"The remarkable and historic density of new residents and the renewed interest in business and commercial growth is resulting in increased amenities, including restaurants and shopping, improved infrastructure, expanded transit options and a much stronger tax base," the group said in a statement.
Some of the residential projects underway include 360 Market Square, a 28-story tower with 292 units being built on the old Market Square Arena site; the second phase of 9 on Canal, a 197-unit project being built on West 9th Street; and the second phase of Axis, a 160-unit project being built on North Senate Avenue.
Who is buying all these pricey units? Much of the demand is being generated by young people making $90,000 and more — "the millennial crowd that every city is chasing," said Sherry Seiwert, president of Downtown Indy.
The group also said all Downtown construction — including housing, offices and commercial — adds up to 58 projects in the pipeline between now and 2017, with an investment of more than $1.36 billion. Of that, more than half, or about $714 million, is geared toward residential construction.
Since 1990, more than $12.4 billion has been invested Downtown, the group said.
Other highlights of the report:
* This year, more than 150 single-family homes, condominiums and town homes will be put on the Downtown market, ranging in price from $200,000 to more than $1 million.
* In a recent survey, more than one-third of the residents moving into Downtown were coming from outside of Indiana.
Call Star reporter John Russell at (317) 444-6283 and follow him on Twitter @johnrussell99.