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CoStar Insight

Indianapolis apartment building boom gives way to slowdown

Rising costs, weaker demand push new development to decade-low levels
Sylo, a new apartment building in Zionsville, Indiana, opened this year. (CoStar)
Sylo, a new apartment building in Zionsville, Indiana, opened this year. (CoStar)
CoStar Analytics
December 16, 2025 | 3:28 P.M.

Higher borrowing costs, stricter equity requirements and slower rent growth have pushed apartment construction in Indianapolis to its lowest level in nearly 10 years.

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