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Indianapolis sees nation's highest rent rate increase

A report from House Canary said the metro area saw rents increase about 30% last year.

INDIANAPOLIS — If you rent, you know it can be expensive.

And over the last year, Indianapolis has seen the highest residential rental price increase in the country

13News looked into what's causing the trend - and when prices might come back down.

Experts say we need to see more home construction, creating more places for people to live, before we see the price of rent go down. 

That could take some time.

A new report from House Canary says the Indianapolis metro area saw a rent increase of about 30% last year, the highest in the country.

"Well, because Indy's so strong economically," said Doug McCoy, director of real estate studies at Indiana University. 

The report shows the average Indy rent rose $400 over the last year, despite most cities across the country seeing a decline.

"You look at employment and population growth, household growth, wage growth, all those kinds of things is very strong," McCoy said.

McCoy said the metro area has so much happening right now, it's forcing rent increases.

At the state level, some lawmakers are working to move legislation that could help tenants struggling with rent increases.

"We passed a tool for Marion County to be able to provide incentives, do infrastructure upgrades, to provide grants and loans toward the goal of increasing the amount of affordable housing in Indianapolis," said Rep. Justin Moed, D-District 97.

Moed authored the bill and said it's something the city to combat rising rates.

Meanwhile, McCoy said there is some hope that prices could start to drop here by the end of this year.

"Eventually, probably in the next 12 months, we're going to start to see supply start to increase again on the multi-family side on the rental side. That supply is going to help temper that increase," he said.

Even with the rental rate increases, Indianapolis remains in the top 10 of the country's least expensive cities to live.

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