The cost of student housing in Indy
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Student rents in Indianapolis have risen more slowly than the region's broader rental market over the past five years, but the gap still leaves many struggling with affordability, according to Moody's data shared with Axios.
Why it matters: Expensive student housing adds to the already-high cost of college.
By the numbers: Average rents for students in Indy grew by 19% from 2020 to 2025, while average market-rate rents grew 25.5%.
- Moody's defined student housing as off-campus apartments where more than half of the tenants are college students.
- The analysis included rent growth for students of the former IUPUI, as well as students attending IU and Purdue downtown since the split.
Caveat: Butler University was not included in Moody's analysis.
Yes, but: A Zillow market analysis of the 46208 zip code Butler calls home finds that average rent near campus is 33% lower than the national average, and has fallen about $100 per month when compared to last September.
The big picture: Nationally, rent growth for market-rate apartments has been outpacing that of student housing, says Ricardo Rosas, Moody's associate data scientist.
- However, over the past five years, roughly 24% of 140 colleges and universities analyzed saw student rents grow faster than market-rate rents.
Between the lines: When rents rise in a metro area, student housing tends to follow suit, research suggests.
- Strong demand to live near campus instead of elsewhere in the metro can also keep student rents high.
- So can luxury apartments (think: saunas, yoga studios and infinity pools), which have moved into many student housing markets.
The bottom line: "While multifamily rents continue to command higher rates, the rapid growth in student housing rents is creating a mounting affordability crisis for students," according to a recent Moody's analysis.
- The financial strain could limit access to higher education, especially for lower-income students.