INDIANAPOLIS — We are seeing record high increases in rent prices across the country, and the rates in Indiana and Indianapolis are higher than the national average. 

Rent prices are fluctuating alongside the housing market. Those who can’t afford to buy a house are spending more on rent, causing the prices to rise. Just like everything else, inflation is playing a role, too. 

We’ve seen rent prices increase to record highs during the pandemic, but that could be changing soon. 

“Maybe a bit of economic optimism filtering through right now,” said Apartment List Senior Research Associate Rob Warnock.

While we most likely won’t see the same prices we saw before the pandemic, researchers estimate we could be seeing the rise in prices start to slow down. 

According to Apartment, over the past year rent prices have increased across the nation by about 12 percent. Here in Indiana, we’ve seen growth a little bit faster at around 13 percent. And for Indianapolis specifically, we’ve seen rent increase by 14.5 percent this past year. 

We know that rent prices typically rise a little each year no matter what, but during the pandemic, we saw them jump in unprecedented amounts. 

But the numbers seem to be less dramatic than the year before. 

“Last year, 2021 was the year in which prices kind of exploded. I think it was a confluence of the construction industry being at its lowest, for sale prices being at their peak.” 

Overall inflation plays a role. Since we’ve seen a slight decrease in gas prices and construction prices, we could soon see that trickle down to rent prices as well. 

“We’re kind of at this interesting point where a couple of different economic indicators for inflation and our rent growth index are both sort of showing signs of slowing down and maybe coming down a little bit,” Warnock said. 

One reason for the increase could be the housing market, during the pandemic people wanted more from homes. But since there has been a lower inventory of houses for them to buy that pushed more people into the rental market. In many cases, people with higher incomes who could pay more and cause prices to rise.