In Indianapolis, 25- to 34-year-olds with college degrees have been flocking to live Downtown in such great numbers that the city leads most of the nation in growth of that demographic.

It's a sign that points not only to a pulsating Downtown, but a possibility that the so-called brain drain may be fading out.

"There was a time in Indiana that in one hand students received their diploma and in the other hand they had the keys to the U-Haul and saw Indiana in the rearview mirror," said Marvin Scott, a professor of sociology at Butler University. "I would hope this would mean that's no longer the case."

In the past decade, Indianapolis saw an 83 percent jump in college-educated 20- and 30-somethings Downtown, making it second in growth only to St. Louis, which rose 87 percent. The numbers come from an analysis of census data from the nation's 51 largest metro cities, commissioned by CEOs for Cities, a nonprofit consortium of city leaders.

Nationwide, the study found a similar Downtown explosion taking place.

In more than two-thirds of the 51 cities, the young, college-educated population grew twice as fast within 3 miles of the urban center as in the rest of the metropolitan area, up an average 26 percent, compared with 13 percent.

Indianapolis' metro growth for the demographic rose just 14 percent during the 10-year period, compared with Downtown's 83 percent growth.

The reason for the influx of young, talented residents has to do with everything you see Downtown, urban leaders say.

Professional sports teams, museums, cultural districts, restaurants, a glitzy mall, walkability, jobs, residential development and convenience.

"Indianapolis is benefiting from what's been under way for 10 years to create a quality of place that is attractive to young people," said Tamara Zahn, president of Indianapolis Downtown Inc. "We have lots of jobs and lots of employers centered in Downtown. The walkability of Downtown. People like the activities. They like the restaurants. They like to live where they work."

And there is a great social advantage. Just walk outside the door, and there is always something going on.

That's exactly what drew 27-year-old Megan Gossett to her condo at the corner of New York and New Jersey streets.

"Once I get home, I can park my car. I can walk everywhere. It's kind of central to everything," said Gossett, a sports lover and a marketing coordinator at Ermco, an electrical contractor on the Southside.

She has season tickets to the Indiana Pacers and the Indianapolis Colts. She likes to frequent Massachusetts Avenue. And Saffron, her Manchester terrier mixed with a Jack Russell terrier, loves to take walks in the big city.

"I grew up being brought Downtown," she said. "Now I'm right here all the time."

The fact that she and her Downtown counterparts are here in droves is something that was envisioned nearly 40 years ago.

As early as the late 1970s, leaders proposed ways to build a thriving city, bustling with workers and shoppers during the day and city dwellers at night.

That's when plans for Circle Centre mall were conceived.

But officials contended that Downtown needed to secure retail and office presences, and become a hot spot for convention business, before the residential aspect could be tackled.

As the mall went up and development blossomed, housing growth began.

By 2000, everyone from single, young professionals to empty nesters was fueling a residential explosion in a city center once known mostly for high-rise office buildings and sports venues.

Downtown real estate was sizzling. More than 1,000 new dwellings -- worth $140 million -- opened from 2000 to 2004, running the gamut from low-income apartments to posh penthouses.

Each year since, residential projects have been popping up, and the people moving in are increasingly young college grads.

Take Cosmopolitan on the Canal, a luxury apartment development that opened in February 2010.

Within six months of opening, it was 100 percent leased, and 60 percent of those renters were between the ages of 22 and 33.

But they weren't just young, said Kathy Desautels, director of development services with Flaherty & Collins, which developed the canal property. With average rent at $1,400 a month plus $85 monthly for parking, they were also mostly college-educated professionals.

"That rent obviously commands a higher income," said Desautels, noting the median income of Cosmopolitan renters is $61,000. "These are professional people that work Downtown. People that are being transferred to Indianapolis, moving in from out of town. These are people coming in from the suburbs."

That growth of the young demographic Downtown has Desautels' company, with just one residential development Downtown, with a key mission.

"We plan to continue to look, to develop Downtown," she said. "Whenever there is a possibility to look at a site, acquire a site and look to develop Downtown, we will do it."

Because there are plenty of people seeking a place to live.

Aron McGuire feels lucky to have landed his space at the Union Laundry Lofts in the Fletcher Place area as a 20-something back in 2001.

"Living out in the suburbs didn't sound like a whole lot of fun to me," said McGuire, who works at USA Track & Field and has a 10-minute walk to his job. "I like the city atmosphere. But it's like a small big city."

Everywhere he goes, McGuire said he runs into other young professionals he knows. Downtown's like its own little neighborhood.

Affordability also makes Downtown a magnet for his demographic.

"What's the cool thing about Indianapolis is that a loft in New York and Chicago would go for five times as much as you pay for here," said McGuire, the champion bobsledder. "In Indianapolis, you get the experience of a big-city atmosphere at reasonable cost."

Source: http://www.indystar.com/article/20110410/BUSINESS04/304100001/1279/BUSINESS04/Downtown-has-become-magnet-young-educated-residents