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2026 Q2 Multifamily Market Overview

 

In this report:

The Evansville–Henderson, IN-KY Metropolitan Statistical Area (MSA), anchored by the city of Evansville in Vanderburgh County, is Indiana’s third-largest metro and a strategically positioned regional hub in the southwest corner of the state along the Ohio River. With an MSA population of 273,519, Evansville sits within a 250-mile radius of Nashville, St. Louis, Indianapolis, Cincinnati, and Louisville, reinforcing its role as a distribution and logistics crossroads.

The economy is supported by over 8,000 businesses across Advanced Manufacturing, Health & Life Sciences, Logistics & Transportation, and Food & Beverage. Deaconess Health System is the MSA’s largest employer, and Toyota Motor Manufacturing Indiana (Gibson County / 25 miles north) is one of the region’s most significant private-sector job drivers. Berry Global, a Fortune 500 plastics manufacturer headquartered in Evansville, further anchors the manufacturing sector.

Evansville’s identity is shaped by its riverfront character, civic pride, and an affordability profile that has earned it national recognition as a top market for millennial homebuyers and remote workers. The Wesselman Woods Nature Preserve, the largest urban old-growth forest in the United States, and a revitalizing downtown anchored by The Promenade mixed-use development add to the region’s quality-of-life appeal. The MSA’s unemployment rate of 2.5% remains well below the national average of 4.5%.

 

Evansville Economy

Evansville’s economy is defined by four primary sectors: Advanced Manufacturing, Health & Life Sciences, Logistics & Transportation, and Food & Beverage. Total employment stands at approximately 141,000 jobs.

  • Advanced Manufacturing holds the highest location quotient in the MSA (LQ: 1.6) with approximately 18,000 manufacturing jobs. Key employers include Toyota Motor Manufacturing Indiana (Gibson County), Berry Global, Koch Enterprises, Jasper Engines & Transmissions, and Uniseal (a subsidiary of South Korea’s LG Chem).
  • Education & Health Services and Trade, Transportation & Utilities each account for approximately 27,000 jobs and represent the two largest employment sectors by job count. Deaconess Health System and Ascension St. Vincent anchor the healthcare cluster.
  • Professional & Business Services (18,000 jobs) showed positive current growth of 1.93%, outpacing the national rate, reflecting expansion in engineering, finance, and logistics-adjacent services.
  • The MSA’s unemployment rate of 2.5% compares favorably to the national rate of 4.5%, a consistent advantage for the region.
  • Median household income stands at $69,286, growing at 2.0% year-over-year, and is forecast to continue growing approximately 3.3% annually over the next five years.

Population Analysis

 

Evansville MSA Population

The Evansville MSA has a current population of 273,786. The majority of the population comes from Vanderburgh County (181,995) while Posey (24,988) and Warrick (66,803) account for the remaining 33% of the MSA population. Overall, the MSA has grown by 1.43% from 2022-25, and Warrick County has been the fastest-growing county within the MSA with 2.38% growth during that same time period.

Demographics

Total Population (MSA)
273,786
Population Growth (2022-25)
1.43%
Unemployment Rate (April 2026)
2.5%

Multifamily Highlights

Apartment Market Overview:

115
Apartment Communities (50+ units)
18,589
Total Units (50+ units)
$1,055
Avg. Asking Rent
2.3%
Rent Growth (Previous 12 Months)
94.5%
Occupancy

12-Month Sales:

$52.7M
12-month Sales Volume ($)
609
12-month Sales (Units)
6
12-month Sales (# of transactions)

Evansville Multifamily Analysis

 

Evansville’s multifamily market is one of the most supply-constrained in the Midwest, characterized by a structurally tight vacancy profile, conservative development activity, and stable but moderating rent growth. As of Q2 2026, the market comprises 18,589 apartment units across 115 existing properties, with just 162 units under construction — equal to roughly 1.0% of existing inventory.

Supply & Vacancy Trends

Net deliveries over the past 12 months totaled just 48 units, well below the market’s historical annual average of 144 units. The active pipeline is confined to a single project, The Vault on Main (162 units, estimated August 2026 delivery), which limits near-term competitive pressure. Market vacancy stands at 5.5%, significantly below the national average of approximately 8–9%, and represents only a modest 50-basis-point year-over-year increase. By asset class, 4 & 5 Star vacancy is tightest at 7.2%, 3 Star at 5.6%, and 1 & 2 Star at 4.9%, reflecting the affordability advantages of lower-tier assets in this market.

Rent & Affordability

Average asking rents stand at $1,055 per month, up 2.3% year-over-year. Evansville remains among the most affordable multifamily markets in the Midwest, well below peer markets such as Nashville ($1,700+), Indianapolis ($1,200+), and Louisville ($1,100+). Warrick County commands the highest rents by submarket ($1,266/unit) with the strongest rent growth (3.4% YOY), while West Vanderburgh County leads at 4.7% growth. The 3 Star segment, which accounts for the largest share of inventory (8,487 units), has demonstrated the most consistent demand, posting positive absorption and steady rent gains.

 

Economic Development

  • In February 2026, TaylorMade Golf Co. announced a multimillion-dollar expansion in Vanderburgh County, constructing a new 53-acre warehouse facility expected to create up to 50 new jobs by 2031. TaylorMade has operated in Evansville since 2017, and its central location allows it to reach more than 80% of its North American customers within three days.
  • In October 2025, LG Chem Uniseal completed a new 73,000-square-foot warehouse in Evansville, with the South Korea-based automotive adhesives manufacturer citing three consecutive years of growth and plans for continued expansion.
  • In fall 2025, Evansville broke ground on Franklin Lofts, a $13 million mixed-use redevelopment of the historic Hercules Plow factory on Franklin Street, bringing 56 market-rate units to downtown.
  • The University of Evansville recorded record enrollment growth in Fall 2025, with the freshman class up 19% and total enrollment up 10%, reflecting growing demand for the region’s higher education institutions.
  • In August 2025, Separation by Design announced a $5 million expansion more than doubling its facility to 146,000 square feet and adding up to 25 new jobs, fueled by growing demand in the oil, biofuel, and DEF markets.
  • In July 2025, CountryMark completed a more than $100 million expansion at its Mount Vernon refinery — the largest in company history — adding renewable diesel production capacity using Indiana-sourced soybean oil.
  • The University of Southern Indiana is underway on a $34 million renovation and expansion of its Wright Administration Building, with completion expected in 2027.
  • The I-69 Ohio River Crossing — a $933 million project connecting Evansville to Henderson, KY via a new four-lane interstate bridge — is actively under construction. The $202 million Indiana approach broke ground in fall 2024 and is expected to complete in late 2026, with bridge construction beginning in early 2027 and completing by 2031.
  • In April 2024, Toyota Motor Manufacturing Indiana announced a $1.4 billion investment in its Princeton plant to add production of an all-new battery-electric SUV, creating up to 340 new jobs and bringing Toyota’s total Indiana investment to $8 billion. The plant currently employs over 7,500 workers.
 

Major Employers

  1. Deaconess Health System

    10,500 jobs / 487 beds  | Learn More

  2. Toyota Motor Manufacturing (TMMI)

    7,500 jobs  | Learn More

  3. Evansville Vanderburgh School Corporation (EVSC)

    3,519 jobs  | Learn More

  4. Amcor

    3,200 jobs  | Learn More

  5. Ascension St. Vincent

    3,000 jobs / 508 beds  | Learn More

  6. Jasper Engines & Transmissions

    2,500 jobs  | Learn More

  7. TJ Maxx

    2,300 jobs  | Learn More

  8. University of Southern Indiana

    2,119 jobs / 9,399 enrollment  | Learn More

  9. OneMain Financial (HQ)

    1,250 jobs  | Learn More

  10. Kaiser Aluminum Warrick (HQ)

    1,250 jobs  | Learn More

  11. Metronet Inc. (HQ)

    1,142 jobs  | Learn More

  12. CenterPoint Energy

    1,024 jobs  | Learn More

  13. Sabic Innovative Plastics

    1,000 jobs  | Learn More

Other Demand Drivers

  1. University of Evansville

    578 jobs; 2,000 enrollment  | Learn More

  2. Eastland Mall

    1,017,000 SF; JCPenney, Dillard's, Macy's  | Learn More

  3. The Promenade

    215 acres; Costco, Academy Sports & Outdoors, Marshalls  | Learn More

  4. Evansville Pavilion

    273,697 SF; Target, TJ Maxx, HomeGoods, DSW, Kirkland's, Starbucks  | Learn More

  5. Evansville Regional Airport

    Allegiant, American Airlines, Delta, Breeze  | Learn More

  6. Signature School

    #2 High School in U.S.  | Learn More

Our Deal Team

Brian Devlin
KY | IN | OH
Brian Devlin
KY | IN | OH
Phone: (404) 456-7288

Brian Devlin brings over 26 years of commercial real estate experience to his role as a Broker at TKC, where he focuses exclusively on the Kentucky, Ohio, and Indiana markets. Since joining the firm, Brian has closed 178 transactions totaling over $2.09 billion across 20,664 units, reflecting a strong and sustained track record across the Midwest multifamily market. Brian launched his commercial real estate career in Atlanta, GA in 1998 before eventually making his way to TKC in 2017. Having spent years working across KY, OH, and IN, he brings well-rounded market knowledge and a hands-on approach that keeps him closely connected to the clients and communities he serves.

Noah Mudd, CCIM
Indiana
Noah Mudd, CCIM
Indiana
Phone: (317) 794-3000

Noah is from Shelbyville, TN and attended Trevecca Nazarene University where he majored in Exercise Science. He loves the variety in his day-to-day and the feeling of helping investors improve their businesses.

Matt Cogen
Indiana
Matt Cogen
Indiana
Phone: (317) 667-0989

Matt is originally from Franklin, TN and attended Belmont University in Nashville where he studied Business Management. He loves the opportunities he gets to help clients achieve their goals and improve communities.

Sources & Comments

1. The Evansville, IN Metropolitan Statistical Area consists of 3 counties, according to Office of Management and Budget: (1) Posey (2) Vanderburgh (3) Warrick

2. Primary Sources: (1) https://fred.stlouisfed.org/ (2) CoStar (3) MSCI Real Capital Analytics (4) www.bls.gov (5) https://www.evansvilleregion.com

3. Sales Comps are from 05/2025 – 05/2026

4. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty, or guarantee, expressed or implied as to its accuracy

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