Finding an apartment is getting harder in Johnson County

For one couple, finding an apartment that met their needs in Johnson County was a challenge.

Hope and Eric Lemmel looked at several apartments in the Center Grove area and Franklin, but struggled to find one that had a short, flexible lease. Eventually, a connection with a family friend who owns an apartment complex in Franklin allowed them to get the lease they wanted, they said.

Finding an apartment around central Indiana has become more of a challenge as occupancy rates have hit 90 percent and above.

At Polo Run Apartments, a nearly 700-unit apartment complex off of Fry Road near U.S. 31 in Greenwood, vacancies are rare right now. About 95 percent of the units are rented, a number that is higher than normal for the start of the year, property manager Rachel Hand said.

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As of last week, only about 15 units were vacant.

Along with fewer apartments being available, rent prices also have increased, according to data from Tikijian Associates, an Indianapolis-based brokerage firm specializing in apartments. For example, a one-bedroom apartment in Greenwood had an average monthly rent of $653 last year, up 11 percent from $586 in 2009.

The increased prices coincide with higher occupancy rates. In 2009, just slightly more than 90 percent of apartments were rented in Greenwood. Last year, the occupancy rate was 94.6 percent.

In Franklin, monthly rents also have increased. A one-bedroom apartment rents for an average of $626 a month, up 7 percent from $582 in 2009. And the occupancy rate is nearly 96 percent, the highest since 2011.

While rents have risen on the southside, they remain lower than much of central Indiana, which has led to less construction of new apartments when compared to areas like the north side, said George Tikijian, the senior managing director of Tikijian Associates.

Occupancy rates in the area are high, but to be profitable, new apartment units typically need to rent for about $1 per square foot, which is above the average rent in Greenwood, he said.

“If the rents were higher, there would be more apartments built down there,” Tikijian said.

But two new apartment complexes are planned in or near Greenwood.

Construction began last spring on Timbers at County Line, a 210-unit apartment complex just outside Greenwood city limits on the north side of County Line Road between Smock Golf Course and Costco.

The most recent development, The Gables, a 274-unit apartment complex on Smith Valley Road, between State Road 135 and Yorktown Road, recently received city approval. About 80 percent of the units will be income-restricted, available only to households making less than 60 percent of the area median income.

Most of the land in Greenwood that is already zoned for multi-family use is being used for that purpose, and no other apartments are in the development pipeline, Greenwood Planning Director Bill Peeples said.

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Here is a look at the occupancy rate and rent amounts for local communities:

Apartment occupancy rate

Franklin

2009: 95.1 percent

2016: 95.9 percent

Greenwood

2009: 90.6 percent

2016: 94.4 percent

Indianapolis region

2009: 89.4

2016: 93.2

Average rent for one bedroom, one bathroom apartment

Franklin

2009: 582

2016: 626

Greenwood

2009: 568

2016: 653

Indianapolis region

2009: 590

2016: 711

Source: Tikijian Associates

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